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Hyundai Motor's South Korean union votes to strike for a 6th year in a row
July 14, 2017 / 11:42 AM / 4 months ago

Hyundai Motor's South Korean union votes to strike for a 6th year in a row

SEOUL, July 14 (Reuters) - Hyundai Motor’s unionised workers in South Korea voted to go on strike for a sixth year in a row over stalled wage talks, adding to the automaker’s troubles as it struggles to reverse a decline in profits.

Union spokesman Jang Chang-yeol said on Friday that 74 percent of voters approved the strike action, adding that union negotiators would meet next week to decide on plans for walkouts.

“We will continue to have sincere discussions with the labour union to reach a reasonable agreement,” Hyundai Motor said in a statement.

Hyundai Motor, the world’s fifth-biggest automaker together with affiliate Kia Motors, has been hit by strikes in all but four years since the union was formed in 1987. The carmaker usually makes up for lost output later each year.

This year, the 50,274 member union is demanding a 7.13 percent increase in the basic monthly wage and performance pay totaling 30 percent of the automaker’s 2016 net profit.

Hyundai Motor is heading for a 14th straight year-on-year fall in quarterly profit for the April to June quarter as political tensions hit sales in China, where its reliance on sedans and a poor brand image is also hurting its performance. (Reporting by Hyunjoo Jin; editing by David Clarke)

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