Hyundai, Union Prepare to Formally Resume Bargaining

Both Hyundai and Kia are spending a restless weekend as working-level teams continue meeting with union officials ahead of new, formal contract negotiations next week.

Hyundai management will meet Aug. 27 with negotiators from the Hyundai Branch of the Korea Metal Workers Union. This follows partial strikes of four hours on each of two shifts on Aug. 23 (yesterday in Korea) and Aug. 26. The union also has asked its members to boycott work scheduled for this weekend.

A Hyundai spokesman says the auto maker did make a comprehensive response to the union’s demands at their Aug. 22 meeting, which ended with the union doubling up on its partial-strike plan and declaring management had not presented any substantial proposals.

Asked why the union rejected management’s offer, the Hyundai spokesman says, “You’ll have to ask the union about their reaction.”

Korea’s largest daily newspaper, the Chosun Ilbo, earlier reported Georgia Gov. Nathan Deal was in Seoul this week lobbying Hyundai Motor Group Chairman Chung Mong-koo to expand the Kia plant in West Point, GA. The facility, like its sister Hyundai plant near Montgomery, AL, is running at maximum capacity and cannot keep up with North American demand.

The meeting likely addressed plans by Hyundai Motor Group affiliate Hyundai Dymos to build a new seat plant near the West Point facility.

Though the Hyundai spokesperson does not confirm it, sources at Deal’s office say the proposed $35 million factory has received Chung’s approval. The plant will produce seats for a new model to be built by Kia Motors Mfg. Georgia and eventually will supply powertrain parts as well.

The Hyundai Dymos America plant would employ 300 workers. Financing details reportedly have not yet been resolved.

There is hope the Kia union’s 4-hour token strike action Aug. 21 will mark the end of the labor dispute and a new contract can be reached amicably. A spokesman for the auto maker tells WardsAuto the union has not advised management of any further definitive strike plans.

“The union’s mature attitude to find a resolution through discussions, instead of a strike, would be much appreciated,” the spokesman says. “A strike wouldn’t be mutually beneficial.”