Labor dispute halts Hyundai Motor's Genesis production for second day

Production of Hyundai Motor’s Genesis luxury vehicle at its Ulsan plant remained suspended for a second day Tuesday, as a labor standoff over staffing requirements for new models showed no sign of a breakthrough.

The assembly line for Genesis models at Hyundai Motor’s Plant 5 in Ulsan, southeastern South Korea, remained idle Tuesday, following a shutdown that began Monday, according to industry sources.

The line normally begins operations at 6:45 a.m. but production had yet to resume as of Tuesday.

The disruption began at around 9 a.m. Monday, when union officials blocked the automaker's attempt to introduce a trial-production unit of the upcoming Genesis G80 hybrid onto the assembly line.

In response, management notified all employees in the Genesis assembly division at around 10:05 a.m. that it would apply a “no work, no pay” policy. The division reportedly has about 800 unionized workers.

The dispute comes as the two sides weren't able to reach an agreement over labor requirements ahead of the planned production of the Genesis G80 hybrid and a facelifted version of G90 sedan.

The difference is over the amount of labor hours allocated to manufacturing each vehicle. New models change processes and workloads, which can shift staffing needs, so the topic is a major subject of negotiation between management and unions.

Hyundai has tried to reach an agreement on staffing requirements for the upcoming vehicles earlier, but local union officials have reportedly refused to enter negotiations. The representatives are reportedly concerned that the new models could allow the company to operate the assembly line with fewer workers.

Union representatives held an internal meeting Monday evening to discuss the issue but failed to reach a conclusion, according to industry sources.

It remains unclear when production will resume, raising concerns that the disruption could extend beyond two days if negotiations remain stalled.