Azernews.Az

by Alimat Aliyeva

In South Korea, the trade union representing workers at Hyundai Motor Co. began a strike on Friday after failing to reach an agreement with management over wage increases.

Production lines at Hyundai’s plants in Ulsan, Jeonju, and Asan were scheduled to stop for a total of 16 hours. Around 39,000 union members are expected to take part in the strike.

Including Friday’s action, the union has carried out a total of 60 hours of strikes since wage negotiations with management began in May. The repeated walkouts are putting additional pressure on Hyundai as the company tries to maintain stable production.

According to industry experts, the strikes could lead to cumulative production losses of approximately 55,200 vehicles. The resulting losses in potential sales are estimated to exceed 2.3 trillion won, or around $1.64 billion.

The situation could become even more serious next week, as the union is planning additional four-hour strikes. Prolonged disruptions could affect not only Hyundai’s domestic production but also its supply chain and vehicle deliveries.

The labor dispute is also spreading to Hyundai’s affiliate Kia Corp. On Friday, Kia’s union approved a plan for partial strikes from Wednesday through Friday after failing to resolve its own disagreements with management over wages.

Interestingly, labor disputes at major South Korean automakers can have an impact far beyond the factory floor. Hyundai and Kia are major exporters, so prolonged strikes can affect vehicle supplies in overseas markets and potentially delay deliveries to customers around the world.

The latest dispute highlights a broader challenge facing South Korea’s auto industry: manufacturers must balance rising labor costs and workers’ demands for higher wages with the need to remain competitive in an increasingly crowded global electric-vehicle market.