According to Yonhap News Agency's report on August 21, the Hyundai Auto Union (Hyundai Metal Union branch) of South Korea went on a general strike on the 21st due to a deadlock in labor negotiations over wages this year. This is the first time the union has taken such action since 2016.
According to the comprehensive strike directive issued by the union on that day, all employees on the morning shift at production sites who were scheduled to start work at 6:45 am were absent from work. Similarly, employees on the evening shift who were scheduled to start work at 3:30 pm did not arrive either. Including non-production staff, approximately 39,000 union members participated in the strike. As a result of this, all production lines at factories in Ulsan, Jeonju, and Yangsan were shut down that day. Due to the 8-hour strikes by the morning and evening shifts, actual production was suspended for 16 hours.
With the full-scale strike beginning that day, the Hyundai Workers' Union's cumulative strike time this year has increased to 60 hours, with production lines being shut down for a total of 120 hours. Considering Hyundai's production rate of approximately 460 vehicles per hour, the estimated cumulative production loss will reach 55,200 units. Calculated based on the selling price, the cumulative sales loss will exceed 2.3 trillion Korean won (about 11.17 billion yuan). Given that the union has announced a 4-hour strike every day from the 24th to the 25th, the production loss is likely to increase further.
Currently, there is ongoing negotiations between employers and workers regarding three issues: raising bonuses, allowing employees who were fired due to union activities to return to work, and extending the retirement age. The negotiations remain stalled, and the differences have not been resolved.
South Korean media reports screenshot
Modern Auto's labor and management parties held the 16th round of negotiations at the Ulsan plant on the 18th. After 41 days of negotiations, they still failed to reach a consensus. Subsequently, the union finalized a new round of strikes.
The labor disputes mainly focus on three issues: raising bonuses, reinstating the positions of employees who were fired due to illegal actions during union activities, and extending the retirement age.
The company believes that the relevant issues do not fall within the scope of salary negotiations for this year. There is no reason to reinstate employees who have been legally dismissed. Issues related to the extension of retirement age should also be discussed at the political level, such as in the Korean Parliament.
The modern automobile workers' union states that it will continue to exert pressure on the company through strikes and seek solutions acceptable to both sides.
