Hyundai Still Struggles to Deal with South Korean Strike
In mid last month, temporary workers at Hyundai factory that handles production of the Verna and the Accent went on strike asking for permanent contracts. Of course, production was seriously affected, with some other workers trying to extend the protest in another plant in Ulsan, according to a report by Reuters.
And the South Korean carmaker has already mentioned that the strike caused a production loss of $190 million so far, with more losses to come in the next days of strike.
"The strike will not have a major impact on its revenue because the affected plant produces (cheaper) subcompact models, and the South Korean currency remains favorable," Suh Sung-moon, an analyst at Korea Investment & Securities, told the aforementioned source.
However, the company is not at all willing to negotiate and tries to fight back. It warned that a potential shutdown of the factory would cut the payments to 70 percent. As a result, temporary workers are now trying to get the support of permanent workers and a decision is expected to be announced on Friday.
"It will be difficult for temporary workers to continue the sit-in strike as regular workers oppose it, and Hyundai Motor is getting tough with the strike," Lee Sang-Hyun, an analyst at NH Investment & Securities explained.