South Korean automaker Hyundai might face tough times soon as labour troubles are getting underway for the company. Leftist labour group Centre of Indian Trade Unions says that more than 300 workers affiliated to the union have gone on an indefinite strike since the afternoon of 30th October at the company's plant in Sriperumbudur region, about 50 km from Chennai city.
However, Hyundai management has countered the notion by stating in a press release that production was only disrupted for 78 minutes, which delayed the production of around 59 cars. Management reaffirmed that the situation has been brought under control. Statements of the labour group did not tally with the claims of the company.
The tiff was triggered by a wage pact signed last week that Hyundai signed with the United Union of Hyundai Employees. In the pact, Hyundai only recognised the presence of 1,300 employees in its units, whereas the actual number of employees is more than 2,000.
A press release issued by Hyundai stated how the increase in wages ranged from Rs. 11,000 to Rs. 13,000 in accordance with the wage pact. The pact is applicable for a period of 3 years. The increase in salary was calculated "excluding components like the variable dearness allowances and other welfare benefits."
However, there are workers who are speaking against the wage pact, and majority of them are backed by the CITU as well as another rival organisation in the leadership of Anna Thozhir Sanga Peravai. The latter is the labour wing of the AIADMK party in power. Both these group wish to form trade unions and form recognised bodies, something that Hyundai is not in favour of.
R Sridhar, general secretary of the CITU-affiliated HMIEU, said, "The production has come to a halt. We are sitting near the conveyor belt so that no car is processed," said. These employees have a problem with the fact that management did not consider hearing their voice during wage negotiations. Also, there is an issue still pending about reinstating 27 employees who were fired which needs to be addressed.
A Soundararajan, head of CITU in the state, claimed that the strike had not ended. He explained that what was being declared by the company as end of strike was merely shifts getting over for workers who were on strike and that production would be disrupted on the next day as well.
Hyundai stated that the disruption was caused by a minority selection of workers. It also expressed gratitude for state administration that helped establish normalcy in record time. Head of Anna Thozhir Sanga Peravai, R Chinnaswamy, an AIADMK MLA, said about the incident, "I have no clue about the strike and our group is not participating in it."
