The labor union at South Korea’s Hyundai Motor has initiated a full-scale strike today, August 21st, marking the first such action since 2016. The strike comes after wage and salary negotiations between the union and management reached an impasse.
Comprehensive Walkout Affects Production
According to the union’s directive, early shift production workers, who were scheduled to start at 6:45 AM, did not report to work. Similarly, the afternoon shift, set to begin at 3:30 PM, will also see no attendance. Approximately 39,000 union members, including non-production staff, are participating in the walkout. This has led to a complete shutdown of all production lines at the company’s Ulsan, Jeonju, and Asan factories.
With both shifts striking for 8 hours each, the production lines have effectively been halted for 16 hours on the first day of the full strike. This brings the cumulative strike time for the Hyundai Motor Union this year to 60 hours, with production lines experiencing 120 hours of downtime.
Significant Financial Impact Expected
Industry analysts estimate that Hyundai Motor’s hourly production rate is around 460 vehicles. The current work stoppage is projected to result in a production loss of 55,200 vehicles. Based on the sales price per vehicle, the cumulative loss in sales revenue is expected to exceed 2.3 trillion Korean won (approximately 11.57 billion RMB).
The situation could worsen, as the union has announced plans for additional strikes of 4 hours daily on August 24th and 25th, which would further expand production losses.
Key Disputes Remain Unresolved
The core issues driving the labor dispute remain the increase of bonuses, the reinstatement of employees dismissed due to union activities, and the extension of the retirement age. Negotiations are ongoing, but significant differences persist between the labor and management sides.
