Hyundai Motor‘s unionized workers plan to restart labor discussions with the company’s management following a previous impasse this month. The union announced this intention on Wednesday.
Earlier this week, the sizable 44,000-strong union was granted authorization by a governmental body responsible for handling labor conflicts to engage in a strike. This development increases the likelihood of the company experiencing its inaugural wage-related industrial action within a span of five years.
With the commencement of the strike, it has been the first such instance in five years related to wage negotiations at Hyundai Motor. It is speculated that this could cause a disrupt in delivery of some popular vehicles. Hyundai has been struggling to ramp up production because of prolonged component shortages as well.
Subsequent to a request from the company, the union members voted unanimously to recommence negotiations. The union released a statement affirming this and also stated that the negotiations would recommence on Thursday.
During the negotiation period, however, the union conveyed that its members would refrain from participating in extra shifts starting from September 4th.
It was noted earlier on Monday that the strike could cause up to 1 trillion won (USD 755.37 million) in operating losses, and put pressure on domestic sales as there is little backlog to sell via KB Securities research.
