Hyundai reaches a tentative wage deal with its South Korean labor union leaders

Article by Christian A., on August 31, 2012

Hyundai Motor wants to avoid further production losses that had put its sales growth at risk and so it has agreed to enter a tentative wage deal with the labor union leaders in South Korea. The agreement only came after the union conducted several partial strikes in July and August, resulting to a production loss of 76,723 vehicles valued at 1.59 trillion Korean won ($1.40 billion) as of Wednesday.

This is the No. 2 largest strike-related loss in the company's history. The negotiations began last May but they were delayed for various reasons because of disagreements about wages. The talks, which started in May, were drawn out because of issues like wages and overnight work as well as bringing temporary workers onto the regular payroll.

A spokesman said that the union members will vote on the agreement by Monday. These stoppages demonstrate just how risky labor is in the country. The company was able to avoid industrial action for the three years until 2012, and a break from the 1980s and 1990s. The U.S. vehicle exports from South Korea dropped by a quarter in July compared to the previous month.

Topics: hyundai, south korea

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries