Hyundai Motor Company's labor union has initiated a strike, resulting in an estimated loss of billions of won in revenue. The auto industry is experiencing a significant labor dispute, referred to as 'summer struggle.'
As of July 22, the Hyundai union has been conducting a partial strike for three days, working four hours each day. This follows a previous strike from July 13 to 15, where workers struck for two hours each day, and the duration was extended to four hours starting July 20.
Technical staff, divided into morning and afternoon shifts, are participating in the strike, leading to a total of 36 hours of halted production during the strike period this year.
The estimated revenue loss due to the strike is in the billions of won. Industry analysts estimate that the production disruption amounts to about 430 vehicles and 18.7 billion won per hour, resulting in approximately 15,800 vehicles and a total loss of 673 billion won over the 36-hour strike.
The impact extends to suppliers, as the just-in-time production system minimizes inventory of products and parts. When the assembly line stops, parts manufacturers are also affected.
Despite the significant losses, labor-management negotiations remain at a standstill. The company proposed a third negotiation plan on July 8, which included an increase of 89,000 won in monthly base salary, a performance bonus of 350% plus 10 million won, and 15 shares of stock. However, no further negotiations have taken place since then.
The union plans to hold a central countermeasure committee meeting on July 23 to discuss the possibility of additional strikes. If the company does not present a new negotiation proposal, the strike is expected to continue.
Other automakers are also ramping up their labor actions. Korea GM and its labor union are set to conduct their 17th negotiation for a wage and collective agreement today, coinciding with a four-hour partial strike by the morning shift. Renault Korea is scheduled to hold labor negotiations on July 23 and is likely to engage in strike actions as it has already met the legal requirements for a strike.
* This article has been translated by AI.
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