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GM Daewoo workers endorse wage-freeze deal
SEOUL, July 22 (Yonhap) -- GM Daewoo Auto & Technology Co., the South Korean unit of General Motors Corp., said Wednesday its labor union approved a wage-freeze agreement with the company as it grapples with a liquidity crisis.
About 66 percent of the unionized workers at GM Daewoo voted for the deal that would also cut some employee benefits.
GM Daewoo Chief Executive Officer Michael Grimaldi said he was "very pleased with the ratification of the agreement."
"This is very important as we face numerous business challenges," Grimaldi said in a statement.
GM emerged from bankruptcy protection early this month after the U.S. government took control of a majority stake in the world's second-largest carmaker.
Cash-strapped GM Daewoo has been in talks with the state-run Korea Development Bank over the carmaker's request for 1 trillion won (US$800.6 million) in emergency loans.
The talks have reportedly faltered on GM's refusal to offer as collateral part of its GM Daewoo stake as requested by the South Korean bank.
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