Report: Hyundai, union reach tentative labor deal

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Hyundai, Kia, South Korea

South Korea Hyundai Strike

According to Reuters, South Korea’s labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won – around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it’s a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We’d wager that this is why US inventories haven’t been hit quite so hard aside from the battering already taking place. The proposal will now go before the union’s rank and file.

If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months’ salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).

Based on Reuters‘ report, the work stoppages must have taken a real toll on Hyundai – its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Hyundai, union reach tentative labor deal originally appeared on Autoblog on Thu, 05 Sep 2013 18:00:00 EST. Please see our terms for use of feeds.

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Report: Hyundai, union reach tentative labor deal

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Hyundai, Kia, South Korea

South Korea Hyundai Strike

According to Reuters, South Korea’s labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won – around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it’s a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We’d wager that this is why US inventories haven’t been hit quite so hard aside from the battering already taking place. The proposal will now go before the union’s rank and file.

If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months’ salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).

Based on Reuters‘ report, the work stoppages must have taken a real toll on Hyundai – its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Hyundai, union reach tentative labor deal originally appeared on Autoblog on Thu, 05 Sep 2013 18:00:00 EST. Please see our terms for use of feeds.

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Study: US faces constant Labor Day-like traffic in coming decades

Filed under: Government/Legal, Safety

US map of future traffic congestion

With Labor Day weekend upon our American readers, many of you have probably loaded up your vehicles for the last road trip of the summer. But with Labor Day weekend comes traffic. Lots and lots of traffic. And while the Labor Day scrum is generally as bad as things get for the year, a study by the US Travel Association reports that a number of freeways across the country are in danger of heavily increased traffic levels becoming the new normal.

As originally reported on The Car Connection, Americans may be driving less, but the number of cars on our roads is outpacing that decline, which in turn places greater stress on the interstate network. Take Interstate 96, the freeway that runs from downtown Detroit to Grand Rapids, as an example. The only major cities on that east-west road, besides its termini, is the state capital, Lansing. But during Labor Day weekend, its traffic volume increases 154 percent. The USTA warns that unless a project is started quickly, the increased traffic flow will become the norm by 2030.

The USTA also analyzed 15 other major interstates, including three different stretches of I-95 on the country’s east coast, I-5 between Los Angeles and San Diego, I-45 between Dallas and Houston and I-15 between southern California and Las Vegas. Each route was at risk of anywhere from 117- to 159-percent increases in traffic flow by 2040. See the map above for more examples.

All of that sounds pretty daunting, but we also have to wonder if advances in vehicle-to-vehicle communications and autonomous technology over the same period will go a long way toward increasing average traffic speeds by greatly reducing accidents while safely increasing traffic density through platooning.

Either way, scroll down to take a look at the complete study.

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US faces constant Labor Day-like traffic in coming decades originally appeared on Autoblog on Sat, 31 Aug 2013 10:58:00 EST. Please see our terms for use of feeds.

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Report: UAW poised to take notes from German labor unions?

Filed under: Europe, UAW/Unions

Bob King, UAW boss stands at podium with arms up

Automotive News Europe reports the United Auto Workers may borrow from German labor unions’ playbook. UAW President Bob King says that he’s seen the merit of the country’s labor system after having being appointed to the supervisory board of Opel last year. Germany’s so-called codetermination laws state that union leaders or employee representatives must receive as many as half of the seats on the supervisory boards that control an automaker’s major investments. Those boards can also hire or fire executives, and special work councils handle decisions on issues like work hours, benefits and work conditions.

King believes the system gives workers a stronger voice, and says the UAW is open to building a similar system in the US. That could be done through the organization’s current contracts with Chrysler, General Motors and Ford.

Shifting strategies could also help the UAW woo foreign-owned manufacturing plants in the US. King hopes the German labor union strategies will be seen as less combative than the union’s current policies.

UAW poised to take notes from German labor unions? originally appeared on Autoblog on Wed, 26 Jun 2013 08:45:00 EST. Please see our terms for use of feeds.

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