Skip to main content

Hyundai workers on first full strike in 12 years

Hyundai's union has staged partial strikes every year since 2012, including nearly 20 such stoppages this year, demanding higher wages and better benefits. Photograph: (Getty)

AFP Seoul, South Korea Sep 26, 2016, 10.54 AM (IST)
Hyundai Motor’s South Korean labour union staged their first full strike on Monday in more than a decade after negotiations over a wage increase failed.

Nearly 50,000 workers at Hyundai Motor's three plants across the country walked off the job throughout Monday, said a spokesman for its labour union.

This is the first full strike at the company in 12 years.

The union also plans to stage a six-hour partial strike from Tuesday to Friday, the union spokesman said.

Hyundai's union has staged partial strikes every year since 2012, including nearly 20 such stoppages this year, demanding higher wages and better benefits.

Hyundai Motor shares ended down 1.1 per cent at 140,500 Won, compared with a 0.3 per cent fall on the broader market.

Hyundai Motor's unionised workers in South Korea last month overwhelmingly voted down a tentative wage deal which was less generous than last year's package.

The latest demands from workers include a wage increase of 7.2 per cent as well as bonuses for employees that would in total be worth 30 per cent of last year's net profit.

Hyundai is South Korea's biggest automaker and, along with its smaller affiliate Kia, forms the world's fifth-largest car making group.

But it has struggled in recent years due to currency swings and slumping sales in emerging markets including China.

Hyundai has reported a drop in net profit for 10 consecutive quarters, most recently the second quarter of this year.

The firm has estimated the financial losses from the series of strikes staged so far this year at more than two trillion won ($1.8 billion).

(WION with inouts from agencies)
Show Comments
  • delete