The peace that has reigned over South Korea’s historically volatile car industry in recent years is about to be shattered with the decision by union workers at both Hyundai and Kia to strike over pay and working conditions. It will be the first strike for some four years at Hyundai; 80% of the 44,000 Metal Workers’ Union members at Hyundai voted for strike action. Kia hasn’t had a strike for two years.
A four-hour walkout is planned for tomorrow (13 July) with another one planned for the following Friday. The walkouts follow a three-hour stoppage at GM Korea on Tuesday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Hyundai is challenging the legality of the strikes, calling on the government to intervene.
Negotiations over a demand for an 8.4% pay rise broke down last month when union official walked out. The union also wants a profit-sharing scheme, an early end to overnight shifts and permanent jobs for contract workers. Hyundai, which has promised to scrap overnight working from next year, wants further negotiations but admits that supplies are bound to be disrupted.
