Hyundai Says 1,700 Units Lost on Strike’s First Day

Hyundai says a partial strike Tuesday at its three Korean plants cost the automaker 1,700 units of production, and this is expected to continue through Friday.

Workers put down their tools for two hours on both the day and afternoon shifts at plants in Asan, Ulsan and Jeonju.

The Hyundai Motor Branch of the Korean Metal Workers Union is demanding a 7.2% wage increase, bonuses equivalent to 30% of each union member’s net 2015 income, reinstatement of all laid-off workers and veto rights to 8,000 workers who might be reclassified as management employees, thus losing some of their union rights and benefits.

The workers also are striking in defiance of a federal government initiative to revamp the prevailing wage system whereby workers with the most seniority receive higher annual wage increases than the average payout. The government wants to replace this system with a merit-based performance wage-increase system, which the union strongly opposes.

Hyundai notes the strike is marked by poor communication between the union and management and is a detrimental process that has become a union routine.

The walkout coincides with a strike against shipbuilder Hyundai Heavy Industries, based in Ulsan where Hyundai operates five of its Korean assembly plants. HHI is not affiliated with Hyundai Motor Group and its workers are represented by a different union.