Barely Avoided Strike... Hyundai Motor Production Disrupted by Parts Supplier Strike

Hyundai Mobis Subsidiary Motras Joins Metalworkers Union General Strike
Complete Car Cockpit and Chassis Module Production Halted
Hyundai Motor and Kia Face Sequential Production Disruptions Due to Strike Impact

With key parts suppliers joining the general strike organized by the Korean Metal Workers' Union (KMWU), some production lines at Hyundai Motor Company and Kia came to a halt on the 10th. Although Hyundai Motor's labor and management dramatically reached a wage agreement just before the strike to avoid work stoppage, the participation of key parts suppliers in the strike ultimately disrupted the production of finished vehicles.

According to industry sources on the day, Motras, a subsidiary of Hyundai Mobis, began an 8-hour strike, split into two 4-hour shifts in the morning and afternoon. As Motras stopped its production lines, Hyundai Motor's Ulsan, Asan, and Jeonju plants, as well as Kia's Gwangmyeong, Hwaseong, and Gwangju plants, sequentially halted their production lines starting in the afternoon.

Motras, which produces core module parts for Hyundai Motor Company and Kia, participated in the metalworkers' union general strike on the 10th, temporarily disrupting finished vehicle production. The photo shows the quiet Kia Autoland parking lot due to the production halt. Photo by Yonhap News

Motras manufactures component modules for finished vehicles, such as cockpits (driver's seats) and chassis. Although a subsidiary of Hyundai Mobis, Motras directly supplies key modules to finished vehicle makers Hyundai Motor and Kia. To reduce parts inventory, Motras synchronizes module production with real-time finished vehicle demand. Therefore, when Motras' production lines stop, finished vehicle manufacturers Hyundai Motor and Kia are directly affected.

Established in November 2022, Motras is currently conducting its second round of wage and collective bargaining negotiations this year. Since the labor-management introductory meeting in May, negotiations have faced difficulties. As a newly formed union, Motras' union is known to be considerably militant compared to other affiliate unions. It actively participated in the strike and presented a bold collective bargaining proposal this year. Typically, the wage negotiation outcomes of Hyundai Motor, the largest affiliate, serve as a guideline for other affiliates. However, this year Motras demanded a higher basic wage increase (KRW 184,900) than Hyundai Motor's tentative agreement (KRW 112,000) and the union's proposal (KRW 159,000).

Meanwhile, on the 8th, Hyundai Motor's labor and management concluded their 12th round of negotiations and reached a tentative agreement. Due to this dramatic settlement, Hyundai Motor did not participate in the current general strike. Some interpret that the strike lost momentum as Hyundai Motor's union, the largest organization under the KMWU, abandoned its strike intentions. Kia, which only began its wage negotiations in July, did not have the right to strike yet and thus could not participate.

In the finished vehicle industry, only the Korean GM union joined the current general strike. Since the 8th, the Korean GM union has been conducting partial strikes of 8 hours total, split into two 4-hour shifts, over three consecutive days at the Bupyeong and Changwon plants. In the logistics sector, Hyundai Glovis partner company unions' participation in the strike is expected to partially affect logistics and transportation for Hyundai Motor and Kia.

On the day, the Metal Workers' Union announced that about 60,000 union members participated in the first general strike. The union demands through this strike include ▲ implementation of ILO core conventions ▲ revision of Articles 2 and 3 of the Trade Union Act ▲ abolition of time-off for union activities. The proposed revisions to Articles 2 and 3 of the Trade Union Act aim to expand the scope of employers, broaden the scope of workers' collective actions, and limit excessive damages claimed by employers.

This content was produced with the assistance of AI translation services.