Hyundai Agreement Peaceful But Painful

Jan. 13, 2005
Labor peace may have been achieved without any violence in the 36-day strike by 26,000 auto workers against the Hyundai Motor Co., but the price might have been costly for both Hyundai and other South Korean companies. The reason: Because the union did ...

Labor peace may have been achieved without any violence in the 36-day strike by 26,000 auto workers against the Hyundai Motor Co., but the price might have been costly for both Hyundai and other South Korean companies.

The reason: Because the union did not use the government-required mediation process before striking, it opens the door for other union workers in South Korea to bypass that process and use strikes as economic leverage to block layoffs.

The agreement reached Aug. 24 calls for Hyundai to rescind the July 20 layoffs of all but 277 workers. The remaining 1,261 workers who had been laid off will instead be placed on 18-months of unpaid leave and given six months of job retraining. The strike at the plant near Ulsan cost Hyundai nearly $700 million in lost production.

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

The Executive Guide to Best Practices for Ecommerce Integration

Oct. 2, 2023
Get ready to elevate your post-checkout experiences and thrive in today's unpredictable market. Learn why integration and automation are crucial to run operations more smoothly...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!