Hyundai’s labour union held its first full-day, nationwide strike in 12 years, according to Reuters. Yesterday’s walkout occurred across all of the chaebol‘s South Korean plants, its biggest manufacturing base that produced nearly 40% of the cars it sold globally last year.
Led by union chief Park You-ki, the strike, which followed a series of partial ones that have taken place since July, cost the carmaker the production of some 114,000 vehicles worth 2.5 trillion won (RM9.3 billion). This makes it Hyundai’s biggest output loss caused by a strike, in terms of value of the vehicles.
The news agency said that the outage is big enough to put earnings and sales targets of the world’s fifth biggest carmaker at risk. “This year’s strike is lasting longer than expected. The third-quarter earnings should disappoint,” said Samsung Securities automotive analyst Eim Eun-young, who also cited weak domestic demand as a potential culprit.
Hyundai released a statement saying that it was “obviously disappointed” with any production stoppage, and that it was continuing to work with the union to resolve the dispute. Union workers comprehensively voted down a tentative wage package offered last month, which was less generous than last year’s. Strikes have occurred in all but four years of the union’s 29-year history.
The woes have even reached the government, with trade minister Joo Hyung-hwan urging the union to resolve its issues, saying the strike would “throw cold water on the exports recovery.” He added that India has overtaken the country as the fifth largest car-making country from January to July this year, and said that rigid industrial relations and higher wages would cause the domestic industry’s competitiveness to worsen.
Hyundai’s profits dropped for the tenth consecutive quarter in April to June, caused by a downturn in emerging markets and a failure to tap into rising demand for SUVs. Industry analysts predicts weaker-than-expected profits in the third quarter as well, no thanks to the aforementioned strike and slowing domestic demand after a reduction in excise tax expired in June.
Global sales of the Hyundai Motor Group – which comprises of Hyundai and Kia – were expected to drop 0.6% to around 7.96 million units this year, below its 8.13 million unit target, said NH Investment & Securities analyst Cho Soo-hong.
Looking to sell your car? Sell it with Carro.
Bad to worse. P1 never strike.
Hyundai? Bad RV!
inb4 someone mention poton.
inb4 “inb4”
This is what happens when u put foreigners on top and locals at the bottom. These foreigners might be good but surely they care less about the local workers. Not to mention the huge difference in remuneration. There must be a good balance and understanding in the organization. It is a team effort after all. One could not be successful without the other.
Why does it sound like what certain segments of pipu here clamouring and haranguing Gov to do? So izit gud thing or bad thing?
Even the staff knows Hyundai has no RV.
Now we know why u bought saga
In b4 basher says pls kolos shop
Hyundai takde, Inokom kan ade… oh wai
Shucks.. not good. Hyundai are now no 3 in the world – in terms of cars – no 1 VW 2 Toyota 3 Hyundai 4 GM, removing light commercial vehicles. Based on value for money, I support them totally
Does unions at Proton, NAZA and other factories (i heard inokom has no unions) have the balls to stand up to the company and do a strike??
NAZA workers has been laid off early this year. Tak sempat nak strike pun.
8m vehicles sales target. Proton target 8k bookings? Kinda disheartening that we’re bailing out the sheep for billions.
Call me stupid, but the workers are also doing Hyundai a favour what. Look, sales are down by 140,000 units; and the strike caused loss of production of 114,000 units. So, less cars hanging around in car yards unsold lah….. hahahahaha
Proton is the best in the world. There is simply no pressure put on their staffs…..Worry free work environment….
Semua relak, ok?
Kepala hotak takde pressure. My competitor salesman across the road says his plant now activating triple shift in Shah Alam cuz of Persona2 & Saga3 sudden jump. And thats on top of line prep for start run of Ertiga.
I told him, why not gip some sales to Albert’s toyota 1 block away. He says Albert only scare pipu with his crying , so why shud help him?
I gave him a big smile while going back to entertain customers seeing my uber untested Biza.
Hope that the supply of new Hyundais to Malaysia will not be hampered. Need to prime the sorhais buying these cars