[Exclusive] Hyundai Motor Affiliates Also Halt Operations... Supply Chain on Alert Amid 'Domino Strikes'

Partial Strike by Hyundai Mobis Module and Parts Subsidiaries Planned for July 15
Four-Hour Strikes Scheduled for Day and Night Shifts... Disruption in Core Parts Supply Expected

Hyundai Motor Union Increases Pressure
"We Will Show What

The unions of Motras and Unitus, production subsidiaries of Hyundai Mobis, have also announced a partial strike on July 15. Following the Hyundai Motor Union's decision to begin a three-day partial strike from July 13 after wage and collective bargaining negotiations broke down, there are growing concerns about production disruptions as unions at key auto parts affiliates are also launching industrial action.

According to the automobile industry on July 14, the unions of Motras and Unitus, which are production subsidiaries of Hyundai Mobis, will go on partial strike on July 15. Both companies are affiliates that supply key modules and parts to Hyundai Motor and Kia. Motras produces three key modules: driver’s seat, chassis, and front-end modules, while Unitus supplies major safety parts, including airbags, steering systems, and braking systems.

On the afternoon of the 13th, when the Hyundai Motor Branch of the Korean Metal Workers' Union began a three-day partial strike, morning shift workers at the Hyundai Motor Ulsan Plant's Myeongchon Main Gate in Buk-gu, Ulsan, left work two hours early. Photo by Yonhap News

The Motras and Unitus unions plan to strike for four hours each during the daytime and nighttime shifts on July 15. Last year, they divided the strikes into morning and afternoon sessions, each lasting six hours, which led to decreased operating rates at major production lines at Hyundai Motor's Ulsan plant, with some lines ceasing operations altogether.

Industry observers believe that strikes at parts affiliates can have a more direct impact on production lines than those at finished vehicle manufacturers. Hyundai Motor Group adopts the Just In Time (JIT) production system, which minimizes parts inventory and relies on timely supply. Therefore, any suspension in the supply of key parts will immediately affect finished vehicle production lines.

Motras and Unitus have failed to reach a compromise in wage negotiations. Last year, after the labor-management agreement at Hyundai Motor, the negotiation at these companies became prolonged as they demanded a similar level of wages and bonuses, leading to partial strikes that ultimately impacted the production lines of both Hyundai Motor and Kia.

In response, management is trying to persuade the unions.

Heemin Lee, CEO of Motras, distributed a statement to all employees on this day, emphasizing, "Our clients are planning all-out production in the second half of the year to make up for first-half production shortfalls, and thousands of parts suppliers are preparing for this. In the current situation, the only way to achieve stability is through the trust of the market."

He further appealed, "Customer trust, which we have built through stable production and supply, is the only way to safeguard all jobs and our stability. Solutions to address differences between labor and management exist far beyond production disruptions," he said.

With both the Hyundai Motor Union and parts affiliates unions engaging in disputes simultaneously, concerns about production disruptions across the whole group are growing. So far, Hyundai Motor’s labor and management have held 15 rounds of negotiations, but have failed to reach agreement on fundamental wage increases, bonuses, and employment issues related to the introduction of AI and humanoid robots.

The Hyundai Motor Union is ramping up pressure. The union has stated that unless management presents an additional proposal, it will decide on stronger industrial action guidelines at the Central Industrial Action Countermeasures Committee meeting scheduled for July 16. The union has already begun a three-day partial strike, with each shift striking for two hours from July 13 to 15.

On July 14, the Hyundai Motor Branch of the Korean Metal Workers' Union emphasized in a dispute countermeasure committee statement, "Does management think there's nothing to give even if we strike? The branch will show what a full-scale confrontation looks like."

The union stated, "Currently, neither working-level consultations nor negotiations are taking place," and pressed, "Management should concentrate on creating a forward-thinking proposal as soon as possible to prevent catastrophe." The union warned that if management fails to make additional proposals, it may not rule out a protracted struggle.

The union is demanding legitimate performance bonuses, a 50% increase in incentive pay, concrete proposals on extending the mandatory retirement age, reinstatement of dismissed workers, and the withdrawal of provisional seizure and compensation lawsuits. It warned, "Without a forward-thinking proposal, don’t even dream of resuming negotiations."

Meanwhile, Hyundai Motor has announced a suspension of production at all sites, including the Ulsan plant, in response to the union's partial strike. The official reason for the production suspension is "partial strikes related to collective bargaining," and the company stated that the impact would be "partial production disruptions across all vehicle models."

This content was produced with the assistance of AI translation services.