GM’s Korean union approves pact with record bonus, incentive payments of $6,144

GM’s Korean union approves pact with record bonus, incentive payments of $6,144

Automotive News | July 14, 2011 – 12:50 pm EST

SEOUL (Reuters) – The labor union at General Motors’ South Korean unit on Thursday approved a 2011 wage deal with management, a union official said.

GM Korea agreed to give workers record bonus and incentive payments of 6.5 million won ($6,144) each and hike basic salaries by 4.7 percent under a tentative agreement reached on Monday.

“Voter turnout was 98.8 percent and 55.9 percent of the voters were in favor of the deal,” the union official said.

GM said 10,045 workers took part in the vote – out of 10,164 eligible union members.
Under the new contract, GM Korea’s unionized workers will get a 78,828 won ($75) increase in their basic monthly salary and 3 million won in one-off bonuses per employee, as well as 4 million won in performance-based pay for the year 2010, the company told Dow Jones.

The union had asked for a 150,611 won rise in the basic monthly salary and 30 percent of the company’s 586 billion won net profit last year in profit sharing, Dow Jones reported. The company had offered a 68,828 won rise in basic wages and 2.2 million won per employee in one-time bonuses.

GM Korea, which signed wage deals without strikes in 2009 and 2010, suffered a loss of output equivalent to 9,700 vehicles from partial strikes staged last week. The company declined to provide a value for the lost output, Dow Jones said.

GM Korea spokesman Kim Sang-won said the company “will closely cooperate with the union to help achieve this year’s target of a double-digit market share in South Korea.”

In June, the country’s third-largest car maker by sales had a 10% share of the domestic automobile market.

Hyundai Motor Co. and Kia Motors Corp., which together form the world’s fifth-largest automaker by sales, are still in talks with their Korean unions.


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