Strikes Slash Hyundai 2013 Output by 102,000 Units

Strikes against Hyundai and Kia by unionized workers in Korea have hit parent Hyundai Motor Group hard.

Total production lost through partial strikes that were launched Aug. 20 is estimated at 21,392 vehicles valued at 438.3 billion won ($394 million).

Hyundai has taken the biggest hit, with total production losses of 20,130 vehicles valued at 416 billion won ($373 million).

The larger of the two branches lost output in two days of 4-hour partial strikes Aug. 20-21, as well as 8-hour partial strikes Aug. 23 and Aug. 26.

Hyundai employees belonging to the Korea Metal Workers Union refused work on two weekend shifts Aug. 24. The Saturday loss of 17 hours is estimated at 7,000 builds valued at 145.2 billion won ($130 million).

Workers also have been refusing overtime, further reducing output by six hours.

When Hyundai’s partial-strike production cuts are added to the 82,000-unit shortfall worth 1.7 trillion won ($1.5 billion) resulting from the overtime and weekend-work boycott that lasted from April 27 to June 1, overall losses hit a new record.

The 2013 production deficit exceeds 102,000 vehicles valued at 2.1 trillion won ($1.9 billion), the highest losses from strike action Hyundai ever has ever sustained.

Negotiators from the KMWU’s Hyundai branch resumes high-level contract talks with their management counterparts Aug. 27. Hyundai reportedly will expand its offers, and the union team is saying the auto maker had better have a definitive, acceptable proposal ready.

Kia workers have staged a single partial strike, losing two hours of production Aug. 23 at all three Korea plants, for a total loss of 1,262 vehicles valued at 22.3 billion won ($20 million), a company spokesman tells WardsAuto. The Kia union’s negotiations with management are ongoing.