Hyundai under threat of strike in Korea
Automotive News reports Hyundai is facing a strike in Korea. Workers lead by Moon Yong, the head of the company's labor union, are threatening to take action unless they receive better pay and reduced work hours. Earlier this week, 70-percent of the 45,000-member union voted to give leaders the power to enact walkouts. Hyundai is already well aware of the damage that strikes can do – the company reportedly estimates labor disruptions between 1987 and 2008 cost it sales of around one million units worth approximately $10 billion. It's been four years since unions staged a strike against Hyundai, and analysts attribute much of the automaker's forward momentum to this period of relative calm.
Meanwhile, workers at sister company Kia have voted to pursue a strike as well. That means both companies will see an eight-hour stoppage on Friday, July 12.
Organized labor for both manufacturers want a monthly pay increase of $132. They also want to see 30-percent of total company net income be returned to employees in the form of bonuses. The workers are also pushing for plants to move to two eight-hour shifts in place of the double 12-hour schedule. Wage discussions began in May but recently deteriorated, leading to the strike vote.