Latest Automotive News

Subscribe in a reader

Unionized workers at Hyundai launch partial strike

Email   small font medium font large font

Unionized workers at Hyundai Motor Co. began a promised partial strike Monday amid a dispute with management over bonuses, a union official said.

The walkout, which was approved last week by union representatives, began as scheduled Monday afternoon, said Jung Jun-yung, the head of the union's overseas co-operation department. Unionized workers plan to lay down tools Monday for a total of eight hours at three different factories.

Hyundai Motor confirmed the strike was underway, company spokesman Jake Jang said. Hyundai asked the Ulsan District Court to issue an order barring the walkout, Jang said, though adding no decision had yet been reached.

Ulsan is an industrial city about 400 kilometres southeast of Seoul where the world's sixth-largest automaker has its main factory.

Labour troubles are a near constant headache for Hyundai. The company's union has gone on strike every year but one since it was established in 1987.

Under the strike plan, workers will carry out normal shifts Tuesday, but expand the strike Wednesday to a total of 12 hours at each of the three factories. They will decide further action, if any, on Wednesday.

A total of 400 representatives voted unanimously Friday for the 44,000-strong member union to walk off the job.

Unionized workers have refused to work overtime since Dec. 28 after workers received a bonus equal to one month's salary, which they say is less than the agreed amount of a payment equal to 1.5 months.

The company says the latter total was based on an incentive to reach the company's 2006 production target and since that was not achieved because of strikes the payment was reduced.

``There would never have been a strike if the labour-management agreement had been realized,'' the union said on its website.

A week ago, Hyundai sued the union, seeking damages to help cover production losses caused by the refusal to do overtime.

Last year was Hyundai's worst ever in terms of strikes. A total of four walkouts cost Hyundai 118,293 vehicles in lost production costing 1.64 trillion won (US$1.75 billion), according to the company.

Hyundai was also dogged by turmoil following the April arrest and jailing of chairman Chung Mong-koo on embezzlement and breach of trust charges related to a slush fund scandal.

Chung, 68, was released from detention in late June on bail and returned to work after spending time in a hospital. He is currently on trial and was due to appear in court on Tuesday.

Receive the latest automotive news by email!

Enter your email address:

Related news
Hyundai Motor Co.'s union decided to end a strike Wednesday after the company agreed to pay full bonus payments, officials said, resolving one of the latest obstacles facing South Korea's ...
SEOUL, South Korea (AP) _ Hyundai Motor Co. and its labour union have agreed on a new wage deal, the company said Tuesday, likely averting a threatened strike. Hyundai Motor spokesman Jake Jang ...
Riot police were deployed at Hyundai Motor Co.'s headquarters in Seoul on Wednesday as around 1,000 workers held a largely peaceful protest amid a dispute with management over bonuses. The ...
SEOUL, South Korea (AP) _ Unionized workers at Kia Motors Corp. on Tuesday began the first of two strikes planned for this week in a bid for higher wages, the company's union ...
SEOUL, South Korea (AP) _ Hyundai Motor Co. said Saturday its labour union has voted in favour of going on strike amid annual wage negotiations. According to an e-mail from the automaker, 28,243 ...
LONDON (AP) _ Workers at the Peugeot factory in Britain have voted against striking to protest layoffs at the plant, their union said Monday. The Transport and General Workers Union said members at ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Unionized workers at Hyundai launch partial strike
> © 2006-2017 except where otherwise noted