Strikers bring Hyundai Motor production lines to a halt

Industry

Published: 12 Jul. 2023, 17:35 Updated: 12 Jul. 2023, 18:51

Strikers bring Hyundai Motor production lines to a halt

A member of the Korean Confederation of Trade Unions waves a flag during a nationwide metal workers' union strike in Ulsan on Wendesday. [YONHAP]

Production lines at Hyundai Motor ground to a halt on Wednesday after unionized workers launched a strike.

According to the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions (KCTU), an estimated 100,000 out of 187,000 members participated in the general strike on Wednesday. Notable union branches, including those from Hyundai Motor, Hyundai Mobis, HD Hyundai Heavy Industries and Hanwha Ocean, participated in the strike.

The strike is part of the ongoing nationwide strike organized by the Korean Confederation of Trade Unions to demand President Yoon Suk Yeol's resignation, as well as amendments to labor laws and minimum wage hikes.

Hyundai Motor announced Wednesday that production at all of its facilities, including the Ulsan Plant, was suspended for a total of four hours, with the morning and afternoon shifts each striking for two hours.

"We have had partial production disruptions for all models due to the nationwide strike," the company said. "We plan to resume production Thursday."

The Hyundai Motor Union, the largest workplace union in the country boasting approximately 44,000 members, participated in Wednesday's strike, further strengthening its impact. The strike is Hyundai Motor Union's first in five years since 2018.

The participation of Hyundai Mobis' Motras, a module supplier for Hyundai Motor, in the strike is expected to further disrupt Hyundai Motor's production, as it delivers components such as the chassis and PE modules.

Industry insiders say the ongoing strike is expected to cause significant disruptions in production, potentially impacting a minimum of 2,000 vehicles or more as a result of the four-hour walkout.

Joining the cause, the union of HD Hyundai Heavy Industries, a major conglomerate in the Ulsan region, also staged a strike. The HD Hyundai Heavy Industries Union carried out a three-hour partial strike, stopping work from 2 p.m. Wednesday. However, production was not significantly disrupted because there were not a lot of participating union members.

With the automotive and shipbuilding labor unions choosing to participate in the ongoing strike, some are concerned about accumulating work.

The Ministry of Trade, Industry and Energy's latest report on June's export and import trends showed that most product categories are experiencing a decline in export value compared to the same period last year. Bucking the trend, however, exports in the automotive industry grew 46.8 percent and shipbuilding sectors 8.8 percent from June 1 through June 25.

The automotive and shipbuilding industries are expected to continue their positive momentum into the second half of the year, following a strong performance in the first half.

According to the ministry's report on the Industrial Policy Directions released Tuesday, the annual production volume of automobiles is expected to surpass 4 million units in the latter half of this year, marking a recovery for the first time in five years.

For the shipbuilding industry, which saw the largest number of orders received for high-value-added and eco-friendly ships at the beginning of the year, major players like HD HHI, Samsung Heavy Industries and Hanwha Ocean are projected to record simultaneous profits for the first time in 12 years during the latter half, the ministry wrote. This optimistic outlook is fueled by anticipation that the high-value-added ships ordered in 2021 will contribute to a positive trend in exports.

Meanwhile, the Korean Health and Medical Workers' Union will begin a two-day strike on Thursday to demand more medical personnel and support for dedicated hospitals for infectious diseases. It is expected that 145 medical institutions nationwide will participate in the strike, raising concerns about delays in treatment.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]