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Hyundai sues union for US$1 million in damages over strike

South Korea's top automaker Hyundai Motor will file a damages suit for US$1.07 million against its workers' union and its leaders over financial losses caused by strikes, officials said yesterday.

"A 1 billion won [US$1.07 million] damages lawsuit will be filed against the union and all its 26 leaders with the court on Monday [today]," a Hyundai official said.

The damages -- the largest amount ever sought by the South Korean car manufacturer against the Hyundai Motor Workers Union -- were to help make up for production losses caused by union walkouts in protest at reduced bonus payments, he said.

The labor dispute erupted last month when management reduced the year-end special bonus for workers by a third, after the company's business performance was found to be off its target for last year.

Hyundai Motor sold 2.66 million vehicles last year, falling short of its annual sales target of 2.7 million units, according to the company.

In the past few weeks, union has boycotted overtime and staged sits-in to press for the full bonus payment, while management has insisted on a wage agreement that the bonus be commensurate with the business performance.

Hyundai Motor said the latest work stoppage had led to a failure in producing 7,752 vehicles, worth some 120 billion won, since it began on Dec. 28.

"The illegal union act has brought about serious damage to the firm's reputation, as well as production," the Hyundai official said. "As in the year-end special bonus payment, the company will handle the damages suit case strictly according to the law, without a compromise."

The labor dispute turned ugly on Wednesday when violent union members interrupted the company's New Year's business opening ceremony, scuffling with and injuring executives and security guards. Police are investigating the incident.
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