Seoul — Hyundai Motor is expected to lose production of more than 60,000 vehicles as its labor union expands strike action amid stalled wage negotiations, according to industry sources.
The automaker’s union said it will hold four-hour partial strikes Wednesday and Thursday, followed by an eight-hour full-scale strike Friday, its first full-day walkout in 10 years.
The union also plans four-hour partial strikes next Monday and Tuesday, extending the latest round of labor action to five days.
Industry sources estimate that production losses from last month through Aug. 25 could reach about 62,000 vehicles, with lost sales totaling roughly 2.6 trillion won, or $1.85 billion.
The latest walkout follows unsuccessful negotiations between management and the union over wages and bonuses. The two sides held their 16th round of talks earlier Wednesday but failed to narrow their differences.
The 40,000-member union is seeking a 149,600-won increase in monthly base pay and a performance bonus equal to 30 percent of the company’s net profit from last year.
Hyundai has offered an 80,000-won increase in monthly base pay, a performance bonus equal to 350 percent of monthly salary plus 10 million won, as well as 15 shares of company stock.
The labor dispute is adding pressure on Hyundai as the automaker faces weakening global sales.
Hyundai said earlier this month that worldwide sales fell 5.1 percent year over year in July to 318,454 vehicles, partly because of production disruptions caused by partial strikes and softer demand.
Overseas sales declined 3.2 percent to 270,341 vehicles, while domestic sales fell 14.4 percent to 48,113 units.
The July decline marked Hyundai’s 10th consecutive month of lower global sales. The company attributed the weakness to production disruptions from labor action and customers delaying purchases ahead of new model launches. (Source: IANS)
