SEOUL, Dec. 9 (Korea Bizwire) — Hyundai Motor Co.’s attempt to recover output on the back of some easing of chip supply concerns is going nowhere due to a strike at supplier Hankook Tire & Technology Co. and opposition from its own union.
The carmaker applied for the approval of special overtime work to the Ulsan Regional Employment and Labor Office twice, on Nov. 2 and 19, but voluntarily withdrew the applications, according to industry sources.
Hyundai Motor asked the labor union to implement special overtime shifts for the No. 2 plant, which is engaged in the production of the Genesis GV70 and GV80 SUVs.
Once the special overtime work is approved by the regional employment and labor office, the company can negotiate with the union on detailed work hours and days.
Unfortunately, however, it faced opposition from the union.
For the time being, Hyundai Motor plans to boost output by adjusting the Saturday overtime work schedule without exceeding the limit of 52 hours a week.
The adjustment of the Saturday overtime work schedule, however, is also a predicament due to the tight supply of tires resulting from the strike at Hankook Tire that began on Nov. 24.
The No. 3 Ulsan plant, which produces the Avante sedan, cannot implement weekend overtime work for this week.
J. S. Shin (js_shin@koreabizwire.com)