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Staff Reporter
Enemies facing Hyundai-Kia Automotive Group are not just Toyota or Volkswagen, in fact its biggest one may be within its ranks ― its strong union that has staged strikes on an annual basis. But the management's lack of tact in handling the union's demands can't be excluded as a reason for the dire straights Korea's biggest automaker finds itself in.
The company announced Tuesday the routine labor unrest slashed production of 45,000 vehicles for Hyundai Motor and 17,000 for Kia Motors, with unrealized sales loss amounting close to 1 trillion won ($881.4 million).
To Hyundai, damages are not confined to production of existing models.
The automaker postponed the launch of the Genesis Coupe, a follow-up model of the manufacturer's latest luxury sedan Genesis, because of the ongoing partial strikes. The unveiling was originally scheduled for tomorrow but has been postponed until next month.
"We are sorry to notice a problem in carrying on the initial launching plan amid a recent series of strikes," a Hyundai spokesperson said.
Disruptions are likely to continue, as the unions are purportedly planning more partial strikes starting today. That the talks failed to be completed before the Chuseok holiday, regarded as a psychological barrier for both parties, is also giving the unions another delay tactic.
Earlier this month, Hyundai's union members turned down a tentative pay deal agreement, which included the abolishment of the night-shift system for the first time since the company's foundation. It was the first time in six years that union members rejected an agreed tentative contract deal.
Some 61 percent of 42,886 members rejected a 5.6-percent rise in monthly pay, an additional bonus equivalent to three months wages and a lump-sum payment of 3 million won.
Kia followed suit last week to break its own agreement, almost the same package as Hyundai's. It was an easily predicted consequence ― working in separation but still a Hyundai affiliate, Kia's contract deals have conventionally followed Hyundai's.
Union leaders are already preparing for a protracted battle, insiders say. Some are reportedly on vacation at present and will not be back before the announced partial walkouts. Hyundai workers have staged 10 partial strikes, totaling 118 hours, this year so far.
Management says unionists think they will not get as much as they want if rushed.
"Talks already have passed Chuseok, and it looks like the union believes there will no further pressure from its members to complete negotiations, let alone from the general public," another Hyundai spokesperson said.
Management of the company, however, feels more pressed for time over worries of a further possible cut in output. Quick settlement of the spat is the only way to stop the snowballing production loss, as well as regain trust from the market, Hyundai says.
Breakthroughs are more likely to come from within the unions this time, as strings of complaints are surfacing among workers.
Changes to the current work shift system were the hottest issue during negotiations.
"Less skilled workers are falling prey to chronic fractional feuds. It has already cost us dearly, no incentives and bonus money before the holiday," a Hyundai employee working in one of its research centers said on condition of anonymity.
"Many workers here are not happy with the ongoing talks. Most big issues are about workers on production lines and those not in manufacturing departments feel left out."
hckim@koreatimes.co.kr
