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Tue, Jul 29, 2003 - Page 12 News List

Hyundai Motor's labor unrest hurting foreign operations

AFP , SEOUL

Hyundai Motor's main domestic plant was shut down yesterday amid continued labor unrest that has also crippled overseas plants through lack of spare parts, the company said.

South Korea's No. 1 automaker said factories in Russia, Egypt, Malaysia and Pakistan had sus-pended operations due to the parts shortage earlier this month. Plants in China, India and Turkey, have been forced to cut production by half, the company said.

"The plant in China has run out of main components such as engines and transmissions. Without the parts supply, it will have to stop production from early August," Hyundai Motor spokesman Jake Jang said.

Hyundai Motor's strike-hit domestic plants have virtually stopped supplying auto parts overseas because of prolonged labor unrest. Union workers have staged half day and full day strikes since June 20 to push their demands for a shortening the work week from six days to five and union's participation in key management decisions.

There was no sign of labor unrest easing yesterday. Hyundai Motor's main plant in Ulsan remained idle as all 39,000 workers have taken a one-week vacation.

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