Hyundai faces persistent labour strikes in India, plans to shift part of i20 production to Turkey

Hyundai faces persistent labour strikes in India, plans to shift part of i20 production to Turkey

First it was Honda in China, now it’s Hyundai in India. The Korean carmaker, No.2 in India after Maruti Suzuki, is the latest to be hit by worker strikes. According to a Hyundai press statement, 150 workers occupied the factory on Monday, forcing a three-day halt to production that has resulted in a loss of 4,000 cars being made and 1.3 billion rupees ($27.7 million).

This is the fourth strike since 2008 at Hyundai’s two adjacent plants in Sriperumbedur, outside the growing auto hub of Chennai, in the southern state of Tamil Nadu. But here, it isn’t about money.

The strike was to demand the reinstatement of 67 workers who were involved in violent protests in July 2009. Company spokesman Rajiv Mitra said that they damaged company property and assaulted guards and will not be rehired. “If you take them back, it sets a strong precedent: Anyone can do anything and not get punished.”

The strike has since ended after government intervention. Hyundai will take back 35 of the 67 rogue employees. The others will still have to face legal charges.

Hyundai employs about 10,000 in Sriperumbedur directly and its suppliers hire an additional 40,000 people. Last year Hyundai produced 560,000 cars in India, which is the company’s global small car production hub. Hyundai is also India’s biggest car exporter. However, labour issues are causing Hyundai to reconsider putting all eggs into one basket, as it plans to move some production of i20 superminis from India to an existing factory in Turkey by August.

It’s a smart option, as making i20s in Turkey reduces delivery times and incurs lower taxes for the car’s main market, Europe. Last year, Hyundai exported about 50,000 i20s from India to Europe, more than half of total production for that model. However, i20s for the domestic market and for export to right hand drive markets will still be made in India. No Indians would be fired as a result of the shift, Mitra said.

Source

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • ismet on Jun 10, 2010 at 1:09 pm

    what the approach they used!
    apadaa..see proton..no need to strike and majikan alody agreed to sign off new benefit and salary increment also..good job proton Union!

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  • rexis on Jun 10, 2010 at 1:52 pm

    If a job is stable and can sustain a living, there is really no need to strike.

    On the other hand, when a common people has decided to strike and fight for better benefit, imagine their hardness.

    The fact is, the people who work the hardest get the least reward.

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  • mufasa on Jun 10, 2010 at 2:08 pm

    nanti petrol naik,,diorg strike aa tu….lek dulu….

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  • all the work place got problem

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    • acerman on Jun 10, 2010 at 4:51 pm

      if proton workers strike, what do u call that?

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      • celicazz on Jun 10, 2010 at 6:48 pm

        chances to get rid all the lazy and corrupted old-timers who responsible of slowing protons advancement…

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  • exora1 on Jun 10, 2010 at 3:12 pm

    i think all workers have attitude problem, lol

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  • Falseter on Jun 10, 2010 at 3:23 pm

    Indonesia is still free from strikes, please move your plant to Indonesia

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    • calvin on Jun 10, 2010 at 7:18 pm

      yeah, but when they go amok, they will burn down ur factory like the Nike factory and those in the 97 financial crisis.

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  • ko malu saje... on Jun 10, 2010 at 4:13 pm

    wanna kebab flavored i20?

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  • If they are moving to turkey to prevent strikes, then it’s not a smart move at all… ;)

    http://news.bbc.co.uk/2/hi/8379090.stm

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    • altimate on Jun 10, 2010 at 6:29 pm

      Oops.. probably Hyundai hopes that both plants will not have strike at the same time, so production still can jalan.. LOL

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  • Stike…strike…strike….strike…
    P1 & P2…please strike…

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  • still, they wont choose bolehland to open their plant. there must a reason…mmh…oh ya, forget to dont encourage investor to open plant to create job..

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