Mexican Media Brands
Labor Contracts Force Local Output for Hyundai-Kia
Hyundai Motor Co. and its Kia Motors affiliate are required by their labor contracts to maintain high local production in South Korea regardless of market or trade pressures to add capacity elsewhere.
#labor #workforcedevelopment
Share
Hyundai Motor Co. and its Kia Motors affiliate are required by their labor contracts to maintain high local production in South Korea regardless of market or trade pressures to add capacity elsewhere.
Hyundai’s current labor pact demands that the company make at least 1.6 million vehicles per year in Korea, The Korea Herald reports. The agreement requires the approval of local workers before Hyundai opens a factory anywhere overseas.
The contract also forbids Hyundai from laying off workers in Korea because of a business downturn or shift in market demand until after the company makes cuts overseas, according to the newspaper.
Last week Kia’s labor union demanded the company move production its new Telluride SUV from the U.S. to Korea and do the same for its new SP2 small crossover vehicle, which is scheduled to launch in September as the company’s first locally produced model in India.
RELATED CONTENT
-
Denmark, 10 Other EU Members Urge Piston Ban
Denmark and 10 other member nations of the European Union have urged the region to allow them to end gasoline and diesel engine sales by 2030.
-
UPDATE: UAW, GM Reach Tentative Labor Deal
General Motors Co. and the United Auto Workers union have reached a possible deal on a new four-year labor contract covering some 48,000 of the union’s hourly workers in the U.S.
-
Grand Jury Indicts Former FCA Executive In Union Payoff Scheme
A former labor relations executive at Fiat Chrysler Automobiles NV has been charged with making more than $2.2 million in illegal payments to himself and a United Auto Workers union official in Detroit.