Local production of Hyundai Motor cars has halved over the past decade. Hyundai Motor, which forms the world's fifth-largest automotive group with its affiliate Kia Motors, produced only 36 percent of its motor vehicles at home in the first half of this year, compared with 72.7 percent in 2005.
There are many reasons for the automaker's deep cut in domestic production, but that's primarily because top management has decided to relocate production lines abroad because of labor unrest, which usually results in high wage increases.
Against this gloomy backdrop, unionized workers at Hyundai Motor launched a partial strike Tuesday with their counterparts from Hyundai Heavy Industries. Workers of the two firms will also hold a rally Wednesday and Friday in the southeastern industrial city of Ulsan where both companies have their biggest plants. It is the first time in 23 years that workers in the two companies have staged industrial action simultaneously.
Hyundai Motor's union demands a 152,050 won ($133) wage increase and a performance-based bonus amounting to 30 percent of last year's net profit. Hyundai Heavy's workers demand the right to recommend an outside director, in addition to a monthly pay increase of 96,712 won.
Unions are able to go on a strike only if they undergo due procedures, but it's questionable if now is the time for them to walk out.
First of all, it's difficult to predict at the moment how severe the shock from Britain's exit from the European Union will be amid the prolonged global economic slump. Domestically, political and economic uncertainties are running deep following the April 13 general election.
Hyundai Motor has suffered drops in operating profit for eight consecutive quarters in the face of tougher competition both at home and abroad. Hyundai Heavy has been forced to shed thousands of jobs as part of government-led restructuring of the nation's once-mighty shipbuilding industry.
More importantly, subcontractors of the two companies have no other alternative but to suffer production losses from the strikes. This will inevitably deal a fatal blow to the already ailing regional economy in Ulsan and its nearby areas.
It's long past time for Korea to come up with fundamental solutions to put the brakes on strikes that trouble manufacturing giants there almost every year. The first step would be for both labor and management to restore trust, sharing the belief that job losses arising from the relocation of factories overseas will cause irreparable damage to the economy for a long time.
There are many reasons for the automaker's deep cut in domestic production, but that's primarily because top management has decided to relocate production lines abroad because of labor unrest, which usually results in high wage increases.
Against this gloomy backdrop, unionized workers at Hyundai Motor launched a partial strike Tuesday with their counterparts from Hyundai Heavy Industries. Workers of the two firms will also hold a rally Wednesday and Friday in the southeastern industrial city of Ulsan where both companies have their biggest plants. It is the first time in 23 years that workers in the two companies have staged industrial action simultaneously.
Hyundai Motor's union demands a 152,050 won ($133) wage increase and a performance-based bonus amounting to 30 percent of last year's net profit. Hyundai Heavy's workers demand the right to recommend an outside director, in addition to a monthly pay increase of 96,712 won.
Unions are able to go on a strike only if they undergo due procedures, but it's questionable if now is the time for them to walk out.
First of all, it's difficult to predict at the moment how severe the shock from Britain's exit from the European Union will be amid the prolonged global economic slump. Domestically, political and economic uncertainties are running deep following the April 13 general election.
Hyundai Motor has suffered drops in operating profit for eight consecutive quarters in the face of tougher competition both at home and abroad. Hyundai Heavy has been forced to shed thousands of jobs as part of government-led restructuring of the nation's once-mighty shipbuilding industry.
More importantly, subcontractors of the two companies have no other alternative but to suffer production losses from the strikes. This will inevitably deal a fatal blow to the already ailing regional economy in Ulsan and its nearby areas.
It's long past time for Korea to come up with fundamental solutions to put the brakes on strikes that trouble manufacturing giants there almost every year. The first step would be for both labor and management to restore trust, sharing the belief that job losses arising from the relocation of factories overseas will cause irreparable damage to the economy for a long time.
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