Korean Auto Industry Shooting For Strike-Free Year
There’s a constant temptation for commentators on the American auto industry to idealize labor relations outside of the reach of the United Auto Workers. But, as the JoongAn Daily reports, even resurgent automaking nations like Korea still face a number of challenges from unruly workers. Hyundai, Ssangyong and GM-Daewoo have already closed deals with their unions guaranteeing a strike-free 2010, but Kia is still locked in negotiations over
several issues, including wages and role of full-time union representatives. The management wants to enforce restrictions on the number and work practices on union representatives before discussing the wage issue. The union wants to negotiate the two issues at the same time.
If Kia reaches a deal with its union, it will make 2010 the first year in the last 24 without a strike by Korean autoworkers.
Kia has suffered from strikes every year since 1991, creating a reported $5.5b in losses. Hyundai has endured strikes every year between 1987 and 2008, except for 1994. Perhaps the worst labor disputes in Korea came just last year, when workers occupied a factory in protest over the bankruptcy of Ssangyong. And that, ladies and gentlemen, is some important context for the recent rise of Hyundai and Kia in the US market… and another major challenge facing UAW President Bob King’s crusade to organize the transplant automakers.
More by Edward Niedermeyer
Comments
Join the conversation
Well as long as their smarter than Detroit and don't try to morgage everything on a continuously growing market and ever increasing numbers of employees. That's really the only way that everything would have worked out ok for the UAW, if their companies took over the world car market and more employees were hired every year.