GM, Korean union reach tentative agreement on wages, workers

SEOUL, South Korea (AP) - General Motors says it has reached a tentative agreement with its South Korean labor union to a set of measures to cut costs and allocate new car models to existing GM Korea factories.

The agreement Monday between GM and its union steers the American carmaker away from filing for bankruptcy protection for its loss-making Korean unit and paves the way to gain support from the Korea Development Bank, which holds a 17 percent stake in GM Korea.

The agreement reached by GM and its union after 14 rounds of negotiations calls for freezing wages this year. GM will allocate production of new models of sport-utility vehicles to local factories to stabilize their operations.

GM announced in February that it plans to close one of four Korean factories in Gunsan for restructuring.