Partial strike by militant labor union cripples Hyundai's car production

By Lim Chang-won Posted : August 10, 2017, 17:41 Updated : August 10, 2017, 17:41

[A screenshot captured from Hyundai's webpage]



Hyundai Motor reported a daily production loss of 1,500 cars worth about 30 billion won (26.4 million US dollars) caused by a four-hour partial strike by its military labor union that followed widespread concern about sluggish sales at home and abroad.

Hyundai's unionized workers downed tools for two hours twice on Thursday after wage negotiations got bogged down mainly due to what company officials described as excessive demands regardless of prolonged business woes.

The company said in a regulatory filing that production would come to a complete halt for a total of four hours on Thursday and again on Monday. Union leaders vowed to refuse weekend work shifts starting this week.

Workers want an increase of 154,883 won in monthly salary on top of an automatic annual hike and 30 percent of last year's net profit in bonuses along with other demands such as job security regardless of factory line changes from technological and industrial advancements.

The walkout is expected to aggravate Hyundai's trouble caused by a missile dispute between Seoul and Beijing as well as poor sales in the United States.

Hyundai's first-half net profit fell 34 percent from a year ago to 2.3 trillion won and operating profit was down 16 percent to 2.59 trillion won. In China, Hyundai sold 301,277 vehicles in the first six months, down 42 percent from a year ago.
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