Hyundai Motor Company on Friday failed to settle labour disputes that have disrupted operations at all three of its local plants since June 27, costing the company more than 1.27 trillion won in production losses so far, the company and the union said, according to Dow Jones.
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The report said Hyundai and its union ended their 26th negotiations held Friday without a final agreement on wage increases and the introduction of a five-day work week system.
Dow Jones noted that the union, comprising 39,000 of the firm’s total 50,000 employees, has staged partial or general strikes on and off since June 27 while the union and management began talks on April 18.
Hyundai Motor spokesman Jake Jang told Dow Jones the one-month strike at Hyundai Motor’s local plants has forced four of its seven overseas car assembly plants to shut down since mid-July due to parts supply delays.
“Several of Hyundai Motor’s overseas assembly plants -in Russia, Malaysia, Egypt and Pakistan – have remained idle since mid-July due to auto parts shortages, making thousands of employees in the plants lose work. If the strike prolongs to later in August we may have to close the other overseas plants too,” Jang reportedly added.
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By GlobalDataDow Jones said Hyundai Motor’s inventory level is expected to decrease even more quickly next week and into early August because of the company-wide annual summer holiday scheduled for July 28-August 3 when the company will close down all local production facilities.
The news agency said the company and the union resume talks on August 4 after the holiday but the union said it plans to continue partial strikes on August 4 and 5.
Earlier, Dow Jones said, Hyundai Motor came up with a new proposal hoping to settle the dispute this week before the scheduled summer holiday. The revised proposal included an 8.4% wage rise – up from the previous 4% pay rise offer – and an incentive bonus of 200% of monthly salary paid each year, plus a one time bonus of 100% of monthly salary, the report added.
But the union refused to compromise, Dow Jones said, sticking to its demand for an 11.01% on- year pay rise and higher bonuses than offered.
Among other issues on the table is compensation for reduced wages due to the planned introduction of a five-day work week system, Dow Jones added.
