Hyundai Hit by New Round of Partial Strikes in Korea

Hyundai workers stage yet another partial strike, shutting down operations at the automaker’s production locations throughout Korea for four hours on each of two shifts Wednesday to protest stalled contract negotiations.

The workers also will lay down their tools for six hours on each shift Thursday and four hours on each shift Friday, according to the Hyundai Branch of the Korean Metal Workers Union.

The union’s website states no progress has been made in 16 rounds of negotiations since contract talks began May 17 and declares, “We will continue to fight hard until the management accepts our demands.”

While details of the union’s demands have not been disclosed, union officials on Aug. 24 had accepted a management offer of a monthly pay increase of 58,000 won ($52), some 62% less than the 152,050 won ($136) that has prompted 14 partial strikes by the union.

The tentative agreement also called for 350% of one month’s pay, a performance incentive bonus of 3.3 million won ($3,000) and 10 shares of Hyundai common stock per worker.

However, 78% of members rejected the deal, sending the two sides back to the bargaining table.

The KMWU’s Hyundai branch and the automaker reportedly have met three times this week, and a fourth meeting is scheduled for Friday.

Hyundai did not respond to a WardsAuto request for comment.

Neither Hyundai nor its affiliate Kia have been able to reach a new wage accord despite months of meetings. Kia says both management and the Kia Branch of the KMWU are observing a news blackout and are not commenting on the talks.

The 14 partial strikes at Hyundai reportedly have caused production losses of 65,500 vehicles valued at 1.47 trillion won ($1.3 billion).

Korea’s other three automakers, GM Korea, Renault Samsung and Ssangyong all have signed new wage agreements. Both Renault Samsung and Ssangyong avoided strike action during negotiations with the union.

Hyundai’s financial situation in Korea is mitigated by the performance of its overseas plants, but analysts say the automaker is hurting locally and cannot afford the union’s original wage demand.

Korean domestic sales of 42,112 units in August were a 17.6% year-over-year decline. For the first eight months of 2016 Hyundai delivered 441,115 vehicles locally, a decline of 1.3% from 2015.

Conversely, Hyundai’s assembly plants in China, the U.S., India, Czech Republic, Russia, Turkey and Brazil) sold 267,432 vehicles in August, an 11.2% year-on-year increase and a gain of 27.2% from July.

For the eight months, overseas deliveries rose 4.8% with 2,009,702 vehicles sold.