Union strike disrupts production at Hyundai engine-parts supplier

Yoosung Enterprise Co. of South Korea, a car parts company making engine parts such as piston rings, and cylinder liners has had to shut down its two factories due to a union uprising.  The shutdown of the two factories is having an impact on Hyundai Motor Co. and its affiliate Kia Motors Corp.’s vehicle production. Union members are in dispute with Yoosung over pay and production shifts.  The disgruntled union members have moved to take over the factories by force.  Both the Korea Automobile Manufacturer’s Association and the Korea Auto Industries Coop. Association are calling for a strong crackdown on the “illegal” action by the unionized workers.  Hyundai stated that at present the shut down has disrupted production of its sports utility models, such as the Tucson IX, Santa Fe and Veracruz.  Kia says that the production of the Carnival model has also been affected. According to a company spokesperson, “Hyundai Motor and Kia Motors predict that production disruption across all models save for some small cars will be inevitable from May 24, when our engine inventory will be depleted.”  The company also commented that if the shutdown continues, it could have a major impact on South Korean automotive companies. (May 22, 2011)

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