Hyundai Motor’s labour union has stepped up its industrial action this week with the launch of a fourth round of partial strikes, increasing the pressure on South Korea’s leading automaker as it looks to rebound from a weak performance in the first half of the year.
Unionised workers began staging four days of partial strikes on Wednesday (12 August), which are scheduled to last until the following Monday, as they look to secure improved compensation from the automaker.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The first two days of the industrial action involved a four-hour walkout per shift on Wednesday and Thursday of this week, followed by stoppages for 6-hours per shift scheduled for Friday and Monday of next week. This follows three rounds of three-day partial strikes last month, initially for 2 hours per shift followed by 4 hours per shift.
The strike action could continue beyond next week if the two sides fail to reach an agreement on key issues, including higher wages and annual bonuses, the reinstatement of dismissed workers and an extension of the retirement age.
The strikes are becoming increasingly costly for Hyundai, with the previous three rounds of stoppages, totalling 60 hours, estimated to have cost the automaker 42,500 vehicles in lost production.
In the second quarter of the year, Hyundai had also been affected by component shortages following a fire at a key engine supplier in March.
The recent strike action is also estimated to have cost production workers over KRW 1.9 million (US$ 1,350) in lost wages under the company’s ‘no work, no pay’ policy.
