Strike Cuts Hyundai Output Ahead of Reopened Talks

Hyundai says it lost production of 2,106 units Aug. 20, the first day of a 2-day partial strike by members of the Korea Metal Workers Union. Similar losses are expected when the union stages a second 4-hour walkout Aug. 21.

The strike action was authorized last week by 80.4% of Hyundai’s 45,000 KMWU members who cast ballots. Workers at Hyundai affiliate Kia approved a walkout by an 81.4% margin, but production has continued as their branch of the union has not announced its strike strategy.

At Hyundai, working-level talks continue and a full-fledged collective-bargaining session will be held Thursday. Union officials reiterate strike action will continue if the auto maker does not produce a comprehensive proposal addressing their wage, employment-security and other demands.

Hyundai says it will try to avert such discord and get a new contract in place without extensive production losses, but also says publicly the union’s current demands are excessive and cannot be met.

Some analysts believe the auto maker may face an even tougher task in trying to reach an accord with the KWMU branch representing irregular, or contract, workers. That union is demanding Hyundai grant full-time regular status to more than 7,500 contract employees.

The auto maker says that would be too costly, and is sticking to its offer to convert 3,500 contracted workers to fulltime status to fill gaps left by retirements, attrition or other causes over the next three years.

Courts have ruled part-time workers cannot legally strike against Hyundai. The auto maker is the recipient of their service, but their nominal employer is the subcontractor that sent them to work in the Hyundai plant.

Thus, if they strike and interfere with Hyundai production, they are breaking labor laws and could be charged with obstructing business and punished by jail sentences. The auto maker also could sue them personally for lost production.

The contract workers’ protest was personified by Choi Byung-seung and Chun Euibong, who on Aug. 8 ended their 10-month protest atop a 60-ft. (18-m) electrical pylon outside the gates to Hyundai’s Ulsan plant.

The subcontractor who had employed Choi at the plant fired him in 2004 for seeking union representation for himself and other temporary contract workers who were paid half of regular workers’ wages and no benefits.

Choi sued, arguing he in effect was working for Hyundai because he did the

same work as regular employees on the same assembly line, was supervised by Hyundai foremen and work leaders and was assigned shifts and holidays by the auto maker.

Korea’s Supreme Court recently ruled in Choi’s favor and ordered that Hyundai offer him fulltime regular-worker status. But he spent 296 days atop the pylon to demand that all part-time workers be reclassified as fulltime workers. The court ruling applies only to Choi, however.

Police arrested Choi and Chun upon their descent from the tower, questioned them and then released them to a physician’s care. A union source tells WardsAuto they face unspecified charges apparently resulting from their alleged role in a violent July 20 clash between employees and private security guards.