GM Daewoo Union Considers Strike To Get 24% Wage Hike

SEOUL August 19, 2003; Dow Jones reports that the union at GM Daewoo Auto & Technology Co., the South Korean car making affiliate of General Motors Corp. , is considering a strike to press for a 24.3% wage hike, said a GM Daewoo spokesman Tuesday.

About 10,000 unionized workers at GM Daewoo will vote Thursday on whether to go ahead with the walkouts, said the spokesman, who declined to be named. The specific schedule of the possible strike is not yet determined, he said.

The union couldn't be immediately reached for comment.

The 24.3% wage hike demand includes a 12.8%, or 125,336 won ($1=KRW1,180.4), raise in monthly basic wages and an 11.5% increase to compensate for a five year freeze of wages, he said.

GM Daewoo management and its union have had talks on the union's demand since July 10, but have so far failed to reach agreement.

GM Daewoo employs a total of 14,000 workers, of which about 10,000 are unionized.

GM Daewoo was created last October after GM and its partner firms bought a controlling stake in the major car manufacturing operations of failed Daewoo Motor Co.