GM Daewoo workers agree on 5.13% increase in basic salary

[Ming]

GM Daewoo workers agree on 5.13% increase in basic salary
By Kyong-Ae Choi
Last Update: 5:45 AM ET Jul 26, 2007



SEOUL (MarketWatch) -- Unionized workers of South Korea's GM Daewoo Auto & Technology Co. have agreed on a 5.13% wage hike in basic salary for this year, the company said Thursday.

GM Daewoo, a Korean unit of General Motors Corp. will also give the union a special bonus equivalent to two months' salary and a KRW1.5 million lump sum to encourage them to achieve company targets this year, the company said in a statement.

GM Daewoo workers had called for an 8.8% wage hike for this year and a special bonus of four months salary to recognize their contribution to the automaker's strong performance last year.

The company posted a net profit of KRW592.7 billion in 2006, a sharp rise from KRW65.4 billion a year earlier.

The company and the union reached the agreement on wages after 11 rounds of negotiations

Source: http://www.marketwatch.com/news/stor...0C96EA7BECD%7D

[nadepalma]

Originally Posted by Ming

The company posted a net profit of KRW592.7 billion in 2006, a sharp rise from KRW65.4 billion a year earlier.

Holy Crap! A sharp rise is right -- going from 65.4 billion to 592.7 billion? Wow. I don't know what that translates to in $US, but anytime you see such a huge increase (regardless of monetary denomination) it's impressive.

[steverino]

I'm sure the UAW is going to be impressed that their bretheren are doing so well

[69Firebird400]

Good, and it only took 11 rounds of negotiations to accomplish!

[HEVguy]

At least they have an agreement! Although, it is notable that the Korean operations were profitable vs. the US, they just don't want to price themselves out of being competitive!

[SonicAerio]

Originally Posted by nadepalma

Holy Crap! A sharp rise is right -- going from 65.4 billion to 592.7 billion? Wow. I don't know what that translates to in $US, but anytime you see such a huge increase (regardless of monetary denomination) it's impressive.

Well with that much of an increase, I believe a little raise is due

[nadepalma]

Originally Posted by SonicAerio

Well with that much of an increase, I believe a little raise is due

Yeah, I would imagine so ---

[rueben44]

I concur even though I don’t like workers forcing anything because you are not owed a job it is something that is bestowed upon you and can be taken away.

[63GrandSport001]

You know as much as people like to bash unions if there was no union involved then the big increase in profit would have not resulted in a good increase in wages.

I feel that unions in America have been deomonized and are weakening which would be of great consequence to all working Americans. If the UAW didnt exist then Toyota wouldnt be paying its US workers as much as they are and they wouldnt give them the benefits they do now. They have to as they need to compete for labor in the for factories in the US and since the UAW has gotten pay so high for the big 3 it results in higher wages for other car makers building in America even if there is no union.

[asim]

I just hope the UAW doesn't use this against GM...