By on September 24, 2014

PSY's Gangham Style

Due to a Gangnam-style real estate deal in the Gangnam district of Seoul, South Korea, workers at Hyundai and Kia have gone on partial strike for the next few days.

Bloomberg reports the unions leading the strike will do so through September 26, while wage talks with the parent company are indefinitely postponed. In turn, shares in Hyundai fell 2 percent to close at ₩191,500 ($184 USD) on the Korea Exchange, the lowest since May 2013.

The trigger for the strike was ₩10.6 trillion ($10 billion) real estate deal for property in the Gangnam district of the South Korean capital between Hyundai, Kia and affiliate Hyundai Mobis. The unions claim this move as not only proof Hyundai can pay its workers better, including bonuses — which have been mandated by the country’s supreme court to be a part of a worker’s base pay — but that company chair Chung Mong Moo’s management style leaves a lot to be desired.

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19 Comments on “Hyundai’s Gangnam Style Leads To Partial Strike...”


  • avatar
    TMA1

    Now I’m hungry for some Bibigo.

  • avatar
    mikey

    So Hyundai drops 10 B on a chunk of real estate? The union cries foul, and goes on strike. Really?

    Red ink Rick, and company, managed to turn the biggest corporation in the world into a welfare recipient. Rick W. retires with a 22 million dollar bonus, and a guaranteed pension for life. The UAW and the CAW agree to frozen pensions, lots of concessions including , two tier wages. There hasn’t been a labor related work interruption at GM Ford or Chrysler for five years.

    In the eyes of many here at TTAC the UAW is considered a “parasite” {I’m using one of the nicer words}

    I’m just wondering how would the union haters here describe the Hyundai workers action? Many here have out right stated “I will never buy a UAW built car”

    Would you still buy a union made Kia, or Huyndai.

    @ Cameron….Great reporting as usual., and a late Happy Birthday.

    • 0 avatar

      Thank you!

    • 0 avatar
      wolfinator

      I’m pretty sure most UAW bashers are motivated more by ideology than any solid understanding of reality.

      Most UAW bashers I know claim the UAW is totally responsible for destroying the Big 3. These people will also justify a CEO making 1000x what a line worker makes because “CEOs are the ones that make or break a company, and they deserve all that compensation.”

      Oh, and when a company ends up with a bunch of fixed overhead because management signed dumb contracts in the 60’s, that’s CLEARLY the fault of the line worker. Not the management that signed the dotted line.

      Management should be credited with all success, and failure is always due to greedy or lazy workers. Nevermind that NUMMI proved that view to be completely backwards…

      (Yes, the UAW has issues. But the entire existence of the UAW and those issues is historically tied to management’s antipathy towards line workers.)

      • 0 avatar
        CJinSD

        The reality is that management and organized crime were both to blame and giving them taxpayer money was a travesty.

        • 0 avatar

          Hey CJ, what’s the matter? Lost your edge? First time I see you even conceding management can be even partially responsible for anything, ;).

          • 0 avatar
            CJinSD

            The only innocent victims in the bankruptcies were the engineering grads that tried harnessing their automotive enthusiasm by working in the auto industry. Needless to say they were stripped of their pensions and shafted hard by the Obama regime. The people that were left at GM aren’t worth pocket lint. I have NEVER defended Detroit management on an absolute level. It’s true that they had to concede to the UAW thugs to remain in business long enough to dig their corporations’ graves. They got to pick between bankruptcy over every ridiculous contract or kicking the can in the good times. They picked their own careers over our industrial survival. They should have dealt with the UAW by relocating production to the SE before the corruption loop closed.

          • 0 avatar

            The part about new engineers, yep. The part of kicking the can, overwhelmingly yeah. The part of picking their own survival over the nation’s and workers’ survival, yeah.

            The rest is open to debate, but that’s ok. Even the parts I gave you yeps are open to debate. I think we are still too close to what happened to have a definite opinion, but glad we can find some common ground.

  • avatar
    SCE to AUX

    Important nit: It’s “Gangnam”, not “Gangham”.

  • avatar
    Mandalorian

    Because chicks dig the Equus.

    • 0 avatar
      raresleeper

      I was looking at an Equus today. White. Somewhat blah.

      Then it pulled up ahead of me at the stoplight and I looked at the ass end of it. I about fell asleep.

      Meh.

      But I will take a Genesis 5.0 R-Spec. Methinks “chicks” would dig it more :)

  • avatar
    ccode81

    Korean government is going to charge extra tax for large companies with excess internal reserve. They are busy to convert the balance sheet from cash to non financial asset.

  • avatar

    Korean unions are very aggressive. Good on them. Reminds me of a time when Fiat workers went on strike. The trigger for the strike was similar, but more funny. Fiat and unions were in a lock off about wages, Fiat alleging the usual and workers saying Fiat could pay. At the same time, Juventus, the Fiat owned football (soccer to you Americans) team, paid the largest ever amount for te best player at the time, French palyer Zinedine Zidane. Pointing to that, the unions started the strike.

    Yeah, from a business perspective one thing has nothing to do with the other, but from a public relations perspective, a nice coup from the union. In both Hyundai’s and Fiat’s case.

    • 0 avatar
      Roader

      Yep, the unions are real aggressive. So is management:

      “(Reuters) – South Korean automaker Hyundai Motor Co (005380.KS) plans to build two new factories in China instead of one, two people familiar with the matter told Reuters on Tuesday.”
      HYUNJOO JIN AND SAMUEL SHEN | SEOUL/SHANGHAI | Tue Sep 16, 2014

    • 0 avatar
      jkk6

      Just to shine some light,

      Reason why all the laborers when apeshit it due to the fact that the bidding price was 5b and Hyun/Kia wanted to secure the land so bad they pulled an X-men move going I’m the Juggernaut B. and doubled bid the price instead of giving bonus’s to their employees.

  • avatar
    mfgreen40

    What is the plan for the use of the property? Build another factory?

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