ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Hyundai Motor union goes on partial strike
Publication Date : 21-08-2013
Members of the Hyundai Motor Co. union went on a partial strike on Tuesday, citing failed negotiations with management on a wage hike, welfare benefits and job security.
Some 4,500 union members of South Korea's largest carmaker put down their tools for two rounds of a two-hour strike in the afternoon. Last year’s walkout resulted in a production shortfall of 82,088 vehicles and an estimated sales loss of 1.7 trillion won (US$1.5 billion).
The union said it will return to the factory line on Thursday, when another round of negotiations with the management is scheduled.
Some of the union’s requests are a one-off payment equivalent to 30 per cent of the firm’s $8.17 billion profit in 2012; performance pay, or a bonus, of eight times the monthly base salary; and a progressive pension system in which severance pay increases in proportion to one’s working years.
Yoon Gap-han, president of the company, said the union has requested up to 180 demands amid the global economic slowdown, calling the latest strike an “extreme action”.
“The negotiation process doesn’t look easy and is expected to take a long time,” Yoon said.
“But the firm will quickly resume wage talks and offer compensation that befits workers’ performance,” he added.
This marks the 23rd strike since the union was established in 1987, which in total has caused a production shortfall of more than 1.2 million vehicles and an estimated 13.3 trillion won in lost sales.