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Will the Mobient Gwangju Strike Disrupt Hyundai and Kia’s Supply Chain?

Daniel Kim Views  

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Mobient Gwangju Branch to Begin Full Strike on May 15
Prime Contractor Asked to Cover Parts Transport Rates and Drivers’ Waiting Fees
Industry Warns “Vehicle Production Likely to Be Disrupted”

현대차그룹 The Mobient Gwangju branch of the Hyundai-Kia Auto Parts Transport Union, affiliated with the Federation of Korean Trade Unions, has announced a full strike that will affect deliveries to Hyundai Motor and Kia assembly plants. Labor and industry sources warn that if the stoppage continues, disruptions to parts supplies could quickly affect finished-vehicle production.

On May 14, union officials said the Gwangju branch will begin the full strike at 10:00 a.m. on May 15, targeting all on-site, directly dispatched vehicles. The branch represents truck drivers employed by Daejin Logis and Eugene Logistics who transport parts produced at Gwangju factories to Hyundai and Kia assembly lines.

The union delivered a formal notice to Mobient declaring its intent to undertake collective action, including a full strike. Its demands include higher transport rates for parts and for the prime contractor to assume responsibility for drivers’ waiting fees. The union says it offered a revised proposal that made concessions from its original demands to reach a realistic settlement, but alleges the prime contractor showed no willingness to negotiate. It added that, as of 6:00 p.m. on May 13, it had voided the amended proposals and any coordinated terms with Daejin Logis and Eugene Logistics.

Industry representatives warned the strike could affect Hyundai and Kia’s production. “If parts deliveries stop, production is likely to be disrupted,” the union said, adding that the protest will expand if the situation is ignored.

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Daniel Kim
content@tenbizt.com

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