Hyundai Avoided Strike from Workers | FinanceBrokerage
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Hyundai Avoided Strike from Workers

Hyundai Motor Co’s workers in South Korea on Monday voted to agree with the lowest bonus offered in nearly two decades. And the bonus cut was because of the widespread restructuring in the auto industry and damaging trade conflict with Japan.

In addition to that, the approval, which they announced on Tuesday, dodged another walkout by Hyundai workers for the first time in eight years.

Then, the deal occurred with tightened export curbs by Japan, which threatens to damage Asia’s fourth-biggest economy. And it resulted in a weigh on the auto industry. And this already struggles with production cuts and job losses. Also, because of a slowdown in exports to the U.S., Europe, and other countries.

Last year, U.S. automaker General Motors Co shut down one of its South Korean factories and reduced headcounts. On the other hand, the South Korean unit of Renault is preparing for production cuts.

Furthermore, they issued a statement following the vote results. And the union leaders thanked members for approving with their decision to hold off from staging a strike considering a U.S.-China and Korea-Japan trade dispute and the auto industry’s downturn.

Hyundai Worker’s Votes

Meanwhile, fifty-six percent of Hyundai who cast ballots accepted the deal. And it includes a bonus correspondent to one and a half month’s salary and 3 million won amounting to the lowest bonus payment since 2000, according to union officials.

Also, the deal has one-time payments of up to 6 million won to settle a legal dispute over wages. And it will be worth around 16.27 million won in total, as stated in the leaflet from one of the union factions.

Above all, this deal will help Hyundai in avoiding production losses in South Korea. And this is also a time where they expect the automaker to bounce back from its six straight years of profit decline. And it was due to favorable currency exchange and new sport-utility vehicles.

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