Seoul, Aug 21 (IANS) The labour union of Hyundai Motor launched a full-day strike on Friday after failing to reach an agreement with management over wages, raising concerns about further production disruptions amid sluggish vehicle sales.
It marks the first time in 10 years that the automaker’s union has staged an eight-hour strike, reports Yonhap news agency.
Production lines at Hyundai Motor’s plants in Ulsan, Jeonju and Asan are set to be halted for a combined 16 hours across two work shifts, with about 39,000 union members participating in the walkout.
Including Friday’s walkout, the union has staged a combined 60 hours of strikes since wage talks with management began in May.
The continued strikes are estimated to result in cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trillion won (US$1.64 billion), according to industry sources.
Production disruptions are expected to worsen as the union plans additional four-hour walkouts Monday and Tuesday.
The latest labour action comes after management and the union failed to narrow their differences over wages, a proposed 50 percent increase in performance-based pay, the reinstatement of union members dismissed over illegal activities and an extension of the retirement age.
The continued strikes are expected to bring cumulative production losses from last month through August 25 to around 62,000 vehicles, with lost sales estimated at 2.6 trillion won (US$1.85 billion), according to industry sources familiar with the matter.
The labour dispute is adding pressure on Hyundai Motor as the automaker grapples with weakening global sales.
Its worldwide sales fell 5.1 percent on-year to 318,454 vehicles in July, marking the 10th consecutive month of on-year declines, said an earlier report.
—IANS
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