Labor union opposes the proposal to close the Asan plant due to the lack of semiconductors
Labor union “prolonged disruption in supply and demand for semiconductors…can’t be pushed back by the company”
Labor-management conflict is intensifying over the closure of Hyundai Motor Company’s Asan plant. Despite the inevitable need to build a factory due to the shortage of automotive semiconductors, the union protested fiercely, saying,’Wage loss is unacceptable.’
According to the industry on the 7th, Hyundai Motor Company’s Asan plant is considering a temporary closure due to a shortage of semiconductors for vehicles. It is reported that there is a problem with the supply and demand of the’Power Control Unit (PCU)’ that controls the overall vehicle electrical system.
The shortage is estimated to be about 7,000 units. Initially, the Asan plant was closed for three days and only half operated for four days. It was to respond with a 50% cut-off for 5,000 units and 2000 units.
However, there was a backlash from the union. The union informed the management of its opposition, saying, “We can never accept a leave of business.” This is because wage losses are expected to be inevitable due to the closure and production cuts.
The company came up with a new proposal. It was closed for 5 days, but 70% of the average wage was paid. Even if you do not work for 5 days, you will be given 70% of the 5-day wage. The union also rejected this. After all, the loss of wages is unacceptable.
The company was again closed for two days, but offered a plan to pay 70% of the wage and conduct online home training for two days. The union is also in the position that it cannot agree on the suspension of business. It is argued that the union is responsible for the company that failed to procure automotive semiconductors in a timely manner.
However, the lack of supply of semiconductors for vehicles is not a problem only for Hyundai. This is a problem that global automakers such as Volkswagen, General Motors (GM), and Toyota all face. They entered the system of production cuts early. Nevertheless, Hyundai has survived so far with the quantity secured in advance.
The union has the idea that the shortage of semiconductors for vehicles is likely to be prolonged, so if it is pushed from now on, it will be over. This is to prevent the company from easily deciding to close.
The Asan Plant is a place that produces the Grandeur, the number one sedan sold in Korea. Considering the sales volume of Granger, it is the company that wants to run more factories. A union that will work even though it cannot produce cars because there is no semiconductor for vehicles. Criticism comes out of saying that it’s nothing more than just getting money without working.
Reporter Kim Il-gyu [email protected]
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