Labour problems have hit Hyundai’s Ulsan factory in South Korea, slowing production and hitting domestic and export vehicle shipments.

The company said productivity of the plant had fallen to about 33% of capacity as workers have refused to comply with plans to move some employees to other parts of the factory complex.

With many of the facility’s 3,000 workers said to be receiving training during work hours, the company estimated that Veloster and Accent output has fallen short of requirements by about 130,000 units.

Under the labour management agreement, the company is required to negotiate the man hours at a plant before a new model is put into production.

During the negotiations, the company suggested that some of the surplus workforce arising from the reduction in manpower required due to advances in production technology be put to work on other plants.

Unions have refused the proposal, demanding that job security for regular and temporary workers must come first.