Automotive News reports Hyundai is facing a strike in Korea. Workers lead by Moon Yong, the head of the company's labor union, are threatening to take action unless they receive better pay and reduced work hours. Earlier this week, 70-percent of the 45,000-member union voted to give leaders the power to enact walkouts. Hyundai is already well aware of the damage that strikes can do – the company reportedly estimates labor disruptions between 1987 and 2008 cost it sales of around one million units worth approximately $10 billion. It's been four years since unions staged a strike against Hyundai, and analysts attribute much of the automaker's forward momentum to this period of relative calm.

Meanwhile, workers at sister company Kia have voted to pursue a strike as well. That means both companies will see an eight-hour stoppage on Friday, July 12.

Organized labor for both manufacturers want a monthly pay increase of $132. They also want to see 30-percent of total company net income be returned to employees in the form of bonuses. The workers are also pushing for plants to move to two eight-hour shifts in place of the double 12-hour schedule. Wage discussions began in May but recently deteriorated, leading to the strike vote.


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  • 15 Comments
      MAX
      • 2 Years Ago
      "double 12-hour schedule."
      Albert
      • 2 Years Ago
      Friday is the 13th, no matter which part of the world you are in.
      guyverfanboy
      • 2 Years Ago
      Striking only hurts the company. Stupid in my opinion. Return 30% of profits to the workers? I don't think so.
        Ammo_1
        • 2 Years Ago
        @guyverfanboy
        The return on profits does seem excessive. But, when you are bargaining you should always start high and go down from there. Gives them more leverage.
      Jolly
      • 2 Years Ago
      Do they not remember the horror story that was the Hyundai of the 90's? They were finally getting it together with the new Sonata, Elantra, and especially the Genesis. I mean c'mon, the Genesis coupe R-spec? That's all the raw power of a 370, for half the price. They can't lose it now, they've come so far!
        zoom_zoom_zoom
        • 2 Years Ago
        @Jolly
        excuse me. That would make the Z a 60K car. Looking at their websites, the Genesis R-spec is 30K, and the Nissan is only 3 K more. For only 3K more, I'm buying the Nissan.
      dreadcthulhu01
      • 2 Years Ago
      Wanting 8-hour shifts and a 82.5ยข an hour pay increase (assuming they work 160 hours a month) does not seem too unreasonable. Wanting 30% of the profits for a bonus does sound like a bit much, and would definitely crimp Hyundai/Kia's ability to fund new product development.
        guyverfanboy
        • 2 Years Ago
        @dreadcthulhu01
        Pay increase sounds reasonable, the 30% profit sharing with workers is unrealistic. Hyundai-Kia need that for R&D and also expansion like building more plants in the US. ;-)
      • 2 Years Ago
      [blocked]
      Dean Hammond
      • 2 Years Ago
      uh oh, ramifucations in the form of increased MSRP's?
      Matrix
      • 2 Years Ago
      hyundai and kia is already having a hard time keeping up with demand, a strike would only hurt them and make production demand worse!
      BMW ROCKS!
      • 2 Years Ago
      korea is gonna be the new Detroit - more jobs for the southern states!
      Luc Helterbrand
      • 2 Years Ago
      July 13th not the 12th
      Dreez28
      • 2 Years Ago
      Gotta love funding cheap foriegn labor by buying Asian cars. When did it become more American to benefit from the less fortunate than to support our own economy simply because it's cheaper? America doesn't need imports...period.
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