South Korea: Hyundai workers vote for strike image

For the third year in a row, after wage negotiations have faltered, Hyundai Motor’s South Korean union affiliated workers have voted in favor of a walk out.

The annual salary talks have broken down once more, but the vote to strike comes at a particularly sensible moment for the country’s largest automaker, which has been fighting recently with dropped earnings because of the nation’s fast rising currency that eats away export profits.

The industrial action is rumored to start as early as August 22, and seems to be a traditional negotiation measure. Hyundai, the fifth-largest global automaker together with its brother Kia Motors, has been hit by strikes in all but four of its 27 –year history. The company has estimated the actions have so far cost the automaker a total of 14.4 trillion Korean won ($14.1 billion) in lost vehicle production – even as the workers usually made up the difference later that year.

No less than 69.7% of the total unionized workforce of 47,262 people at Hyundai voted in favor of a strike, after negotiations started in early June came to a halt because of a dispute over the way base salaries should be calculated from now on.

Via Reuters