Hyundai Labor Union Prepares for Strike image

Thursday, June 28th, Hyundai’s labor union declared the wage talks with the management were over and that the union would take steps to go on strike.

The decision will be taken after the votes on July 10th and 11th, and will depend on whether the company will give a ‘positive proposal’. A strike won’t be something new taking into consideration that last year Hyundai and Kia declared they suffered a production disruption after a labor strike.

Yoosung Enterprise Co, the parts supplier, stopped production on May 18th due to disagreements with labor union on new wage and shift systems. This was a big blow for the company since Yoosung offers key engine parts to Kia, Hyundai, Ssangyong Motor, Renault and GM. The strike affected production of Hyundai’s SUVs such as Santa Fe, Veracruz and Tucson ix at the Ulsan plant and also Kia’s Carnival SUV at the Sohari plant.

“Our engine inventory will start to dry up on May 24, after which a production disruption will be inevitable for all of our passenger and commercial vehicles except for some small models…,” Hyundai said in a statement.

It remains to be seen whether Hyundai will have to deal with such a strike this year too. If an agreement between the two parts is not reached until July 10th, the company can expect the worse.