Hyundai Motor Workers Stage First Full Strike in Ten Years Over Wage Disputes

The labor union of Hyundai Motor Co. launched a full day strike on Friday after failing to reach a wage agreement with management. This action marks the first time in ten years that the automaker's union has staged an eight hour strike. Production lines at plants in Ulsan, Jeonju, and Asan were set to be halted for a combined 16 hours across two shifts, with approximately 39,000 union members participating. The union has staged a total of 60 hours of strikes since wage negotiations began in May. Industry sources estimate that these disruptions will result in cumulative production losses of around 55,200 vehicles and lost sales exceeding 2.3 trillion won, or 1.64 billion US dollars. The union plans additional four hour walkouts on Monday and Tuesday. The dispute centers on wages, a proposed 50 percent increase in performance based pay, the extension of the retirement age, and the reinstatement of members dismissed for illegal activities. Additionally, the labor union of Kia Corp. approved partial strikes from Wednesday through Friday following its own failed wage negotiations. Kia's union is seeking a monthly base pay increase of 149,600 won and a performance bonus equal to 30 percent of last year's operating profit.