Average compensation will be raised by 27.4 million won
Abbotsford, VIC -- (SBWIRE) -- 09/10/2012 -- The biggest and the most costly strike in the history of Hyundai motors, according to businessweek.com, has ended on August 30, 2012.
53 percent of the 45,000 guild members agreed on the terms between Hyundai and Labor representatives. According to that agreement, average compensation will be raised by 27.3 million won and overnight shifts will be ended. This walkout cost 1.7 trillion won in lost production.
According to an analyst Lee Sang Hyun at NH investments & securities, this loss was worst in the history of this car maker and will cast a dark shadow on the third quarter earnings of the company but the company will be able to cover the losses in the fourth quarter.
For the first time since May of 2009 , the company’s share price fell 1.9 %.
The agreement on a wage that ended the strike included 98,000 won an increase in base salary, bonuses worth 500 percent of a worker’s monthly salary and a one time payout of 9.5 million won, according to the union’s website.
The agreement ended the overnight shifts and will be in effect from march of next year. To make up for the reduced working hours company will invest 300 billion won in equipment and facilities.
Hyundai has faced many strikes in the last four years and none of them lasted for long as they weren’t legal but this one lasted 12 days and was a legal and cost company a lot. To overcome this problem, Hyundai motors has expanded its production to various countries like us, India and Turkey. They are planning to open Brazil as well. In 2000, 93 percent was being produced in South Korean plant and now it has dropped down to 46 percent.
KIA Motors, one of the associates of Hyundai, is also facing this walkout issue and has cost them a lot but the cost is less that Hyundai motors.
YarraHyundai.com.au (http://www.yarrahyundai.com.au) is a Melbourne Hyundai dealer, Yarra Hyundai is a one-stop Hyundai Shop just 5 minutes from Melbourne’s CBD. With their multi-award winning off road SUVs, Tucson and Santa Fe in stock. All this, plus a wide range of pre-owned Hyundais and a broad selection of other makes, all keenly priced to suit every budget.
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