Catherwood LibraryILR School

In a twist on a theme common in US-foreign business deals, American General Motors has balked at acquiring Korean automaker Daewoo Motor due to the labor militancy of Daewoo's employees. GM has put its takeover plans on hold pending a new contract between Daewoo's employees and the current management---referred to by the president of GM Korea as a "satisfactory bargaining agreement," and suspected by some to be an agreement including a no-strike clause. Employees at Daewoo have long opposed the acquisition, and have engaged in protests that have eroded production levels at Daewoo and complicated the negotiations between the two companies.