General Motors Korea has staved off a potential strike at one of its key productions facilities in Asia by tentatively reaching an annual wage agreement with its labor union on Monday, according to Reuters.
While the deal is still subject to a vote by GM South Korea workers, the union has already signed on to the terms of the deal, which includes a basic monthly salary increase of 83,000 won ($71 USD), a bonus of 4 million won ($3,400 USD) and a one-time payment of 6.5 million won ($5,500 USD).
The General has confirmed that it will produce the all-new 2016 Chevrolet Malibu on the second production line at its Bupyeong plant, quashing speculation the the automaker would integrate the two lines and cut output.
Responsible for manufacturing roughly one-fifth of GM’s global output, South Korea serves as a major manufacturing base for General Motors, producing various Chevrolet vehicles that are then exported to many markets outside of North America and China (with a few exceptions, such as the Buick Encore and Opel Mokka). Coincidentally, GM’s labor costs in the country have increased almost 50 percent over the last half decade.