SEOUL — Hyundai Motor Co.’s unionized workers have won permission to go on strike, the union said on Monday, raising the probability of the company’s first wage-related industrial action in five years.
The National Labor Relations Commission, a South Korean government organization that handles labor disputes, cleared the way for strike action at the country’s top car maker, the Hyundai Motor union said in a statement.
The commission recognized large differences in positions between the company’s management and union, Yonhap News Agency said on Monday. A commission spokesperson was not available for comment.
The union said it would gather on Wednesday to decide what the next move would be. Members had voted on Friday to walk out unless the company accepted demands for wage increases and an extension of the retirement age.
Union officials have said they would continue talks with management regardless.
If the strike goes forward, it would be the first such action in five years related to wage negotiations at Hyundai Motor and could disrupt delivery of some popular vehicles.
Hyundai has been struggling to ramp up production because of prolonged component shortages.
The strike could cause up to 1 trillion won ($755.37 million) in operating losses, and put pressure on domestic sales as there is little backlog to sell, KB Securities said in a research note on Monday.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
