A Bad Sign for the Future of Hyundai

Hyundai Motor’s union members wrought havoc at a company ceremony on Jan. 3. The company president received a facial wound after unionized workers pushed him, while other members sprayed fire extinguishers, covering the hall with a misty cloud. The solemn New Year ceremony had to come to an abrupt end.

The reason the union caused such a commotion on the first work day of the year was because they felt their year-end performance bonus was not enough. At the end of last year, Hyundai Motor gave its workers a bonus equivalent to 100 percent of their average pay. That’s because last year’s production volume of 1.62 million vehicles was 98.3 percent of their goal. If they had met their production target, they would have received a 150 percent bonus. Union and management representatives agreed upon the condition during last year’s pay negotiations.

But the union demanded the company pay them a 150 percent bonus, regardless of the performance. Taking into account lost output due to protracted labor strikes last year, Hyundai Motor had lowered its original output target of 1.78 million vehicles by 120,000. The reason unionized workers were unable to meet even the reduced output target was because, in addition to strikes over wages, they had downed tools 12 more times to take part in a broader strike by the umbrella labor group, Korean Confederation of Trade Unions.


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EL34 - 1/5/2007 1:13:54 PM

+2 Boost

I dislike Unions.

Spider99 - 1/5/2007 1:48:43 PM

+3 Boost

Sorry to say, but the reasons unions are like this is because they're made up of blue collar workers. And a lot of time blue collar workers are not the smartest people (why else would they be blue collar?) so they don't think about the future. They just think of the here and now. They don't understand their actions might have consequences in the future.

jasaero - 1/5/2007 2:34:44 PM

+2 Boost

Gotta love the Elitism of the average Autospies poster! Sheesh! I hate unions also, but can't blame it on Blue collar workers. Not gonna say they have the same level of upstanding members of society as white collar, but they do pretty good. The problem with unions is that such organizations cause a culture that focuses too much on the worker coming to work for a paycheck and not enough on making sure the workers job gets done before they start pushing for a pay check. The fact Unions are a communist sorta idea in the first place is probably their single biggest flaw. In my opinion laws should be written that unions can only negotiate for extra compensation that is somehow tied to the company they work fors profits or efficiency. Then if they don't work hard profits or efficiency will fall and they will make less. They shouldn't be able to negotiate for extra money that comes for no good reason other than the strength of the union. Then something like this would never happen as such agreements as this one would be the only sorta agreements they could make and it would simply be illegal to demand more for nothing.

Spider99 - 1/5/2007 2:43:13 PM

+2 Boost

Unions are formed because that's the only way they can protect their jobs. There's nothing about their jobs that can't easily be replaced.

Agent009 - 1/5/2007 2:57:37 PM

+2 Boost

Food for thought:

Should a white collar job be "protected" the same as a blue collar job? White collar jobs are subject to the same fluctuations in revenue as the blue collar jobs. and the same risk of lay offs. GM has proved this time and time again.

The old argument of white collar jobs saved at the expense of blue collar jobs may no longer apply.

UPshift - 1/5/2007 9:22:46 PM

+1 Boost

Unions have destroyed the American auto industry. Their influence has far outstripped their original purpose.

chewy - 1/5/2007 10:06:11 PM

+1 Boost

Unions were really ncecessary when they first came out. But it seems that every auto company is having really big problems with its unions.

paul3230 - 1/5/2007 10:31:17 PM

+1 Boost

This is why Hyundai will never really threaten Toyota or Honda..

sexi_gay_boi - 1/5/2007 11:59:52 PM

0 Boost

hyundai should be reported!!! they have workers like ants... and pay them shit for doing hard work!

neutral - 1/6/2007 3:57:50 AM

+1 Boost

Personally, I like Hyundai for many reasons. I NEVER liked Hyundai in the past(we can all agree Hyundai made pieces of junk except for the past few years). The thing is, Hyundai makes very good every day vehicles at a good price. It's also comforting to see that other places in the world have the same porblems that we do here in America (unions asking too much, etc).

sold2early - 1/6/2007 9:58:30 AM

+1 Boost

Damn, these guys actually make the UAW seem respectable...nah, not really