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Hyundai Workers Accept New Korean Contract
Hourly workers at Hyundai Motor Co. in South Korea have ratified a new labor agreement by a 53:47 margin, thus ending a series of costly ministrikes since mid-July.
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Hourly workers at Hyundai Motor Co. in South Korea have ratified a new labor agreement by a 53:47 margin, thus ending a series of costly ministrikes since mid-July.
The company estimates the walkouts cost it more than 82,000 vehicles, or 1.7 trillion won ($1.5 billion), in lost production. But analysts expect Hyundai to recoup that output in the fourth quarter of this year.
Hyundai's union won its key objective: an end to overnight shifts. Each hourly employee also will receive a 98,000-won ($86) per month pay raise, a bonus equal to five months pay and a 9.6 million-won ($8,500) cash bonus.
The company, which had agreed in 2005 to cease 24-hour production, will finally do so next March. Hyundai says it will invest about 300 billion won ($265 million) in factories and equipment to accelerate output when hours are reduced.
Hyundai affiliate Kia Motors Corp. is still negotiating a contract with its union. Kia estimates it has lost 46,000 units of production, or 758 billion won ($668 million), since the strike began at its factories in mid-July.
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