[Anchor]
The Genesis production line at Hyundai Motor's Ulsan plant suddenly ground to a halt yesterday (November 2). A conflict erupted between labor and management over new vehicle production, adding to a string of bad news for Hyundai Motor, whose sales have been declining for 13 months.
Reporter An Huijae has the story.
[Reporter]
The Genesis line at Hyundai Motor's Ulsan plant stopped at around 9 a.m. yesterday.
The stoppage occurred after the union blocked management's attempt to trial-produce a new model.
The core issue is workforce reduction.
Management plans to mass-produce models including the G80 hybrid starting next month. While the number of workers to be deployed on the new production line has traditionally been decided through labor-management negotiations, reports indicate that no agreement was reached this time.
The union expresses concern that under the guise of streamlining processes, the company could drastically cut headcount and reduce wages.
On the other hand, management maintains that the union halting the production line without securing the right to strike constitutes an illegal act.
Hyundai Motor's sales have been on a downward trend for 13 consecutive months through last month.
[Lee Seung-jo / Vice President, Hyundai Motor: Due to disruptions in domestic plant production that lasted from the second quarter to the third quarter, not only has domestic sales decreased, but the volume of shipments for export to major markets has also declined....]
Global production last month also fell 6.3% compared to the same period last year, and the new vehicle effects for flagship models like the Avante and Tucson have yet to materialize.
The bad news of the new vehicle production line halting has been added to a situation where the aftershocks of a full-scale strike—the first in 10 years—last summer have yet to fade.
(Video Editing: So Ji-hye, Design: Jang Seong-beom, Footage courtesy of Hyundai Motor)
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