Tuesday, July 8, 2008

Strikes cost Hyundai 2,000 vehicles

Strikes last week cost Hyundai Motor Co. an estimated 30 billion won ($28 million at recent exchange rates) and 2,000 vehicles.

Affiliate Kia Motors Corp. lost an estimated $11 million and 900 units.

Separate unions at the automakers took part in strikes against the South Korean government's deal to resume imports of American beef.

More strikes appear to be planned. Union workers at Hyundai plan to stop work for another four hours on both the day and night shifts on Thursday over a wage deal, the union said on Monday.

The strikes have been organized by a larger group called the Korean Confederation of Trade Unions. Hyundai and Kia unions are members.

The union at Hyundai struck for two shifts Wednesday, July 2, and Thursday, July 3, for a total of six hours, including overtime. The union at Kia struck for a total of four hours.

Unions at GM Daewoo Auto & Technology Co. and Ssangyong Motor Co. did not strike, and no more beef-related strikes have been announced.

But larger strikes could be on the way as all four companies have ongoing contract negotiations with unions. The talks are expected to continue well into July and perhaps into August.

Korean unions, especially the one at Hyundai, typically strike every year during contract negotiations. Last year, the union at Hyundai finished negotiations without striking. But the union joined the more aggressive Korean Federation after last year's talks. While there have been signs rank-and-file members want a more moderate stance from their union, the influence of the powerful Korean Federation could prove to be stronger on union leaders

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