At Hyundai Motor Company’s Ulsan plant, the increase in production of the large SUV Palisade is not speeding up, so attention is focused on the background. This is because the gaze of labor and management toward Jeungsan is quite different.
In a situation where the global automobile market environment is rapidly changing, the management side is in the position that Palisade needs to increase production as soon as possible as demand in the US is high.
On the other hand, the union supports the production increase itself in principle, but insists that the ramifications should be considered when the production increase is canceled. In the midst of this, many of the union members who experienced factory inefficiency due to increased production in the past are still lukewarm, so there is no specific discussion with the management on increasing production.
According to the industry on the 29th, the union of Hyundai Motor Company Ulsan 4 recently held a meeting of representatives and confirmed the management’s demand regarding the adjustment of Palisade production. Ulsan Plant 4 produces Starria, Palisade, and Porter.
The management is constantly demanding the union to increase Palisade production as demand for Palisade is increasing, especially in the United States. Earlier, in 2021, labor and management agreed to increase the production of Palisade for export. In fact, this car is so popular that it sells more than 80,000 units a year in the United States.
However, the actual production increase of Palisade is seldom speeding up. Criticism of the production increase is strong inside the union, and the factory working-level department is having difficulty discussing the production increase.
An official familiar with the situation at the Ulsan plant said, “Ulsan Plant 4 had difficulties due to increased production about 10 years ago.” said.
The official continued, “The management suddenly reduced production plans, and production workers who were preparing for overtime had to respond in ad-hoc ways, such as taking vacations.” said.
The labor union’s demand for increased production is also acting as a stumbling block. The union agreed to increase Palisade’s hourly production, but said it was a temporary measure.
At the same time, in order to secure future food, it is demanding that the quantity of the electric SUV ‘Ioniq 7’ to be released in the future be allocated to the Ulsan plant. According to the industry, it is likely that the Ioniq 7 will be produced at the Asan plant.
The management continues to increase the level of pressure on the labor union related to increased production. In the rapidly changing global automobile market, the best response is to prevent customer churn through ‘timely production’.
“Last year, due to the semiconductor supply and demand crisis, customer delivery continued to be delayed, but this year, with competitors’ production normalizing on April 12 and even price cuts taking place, customers no longer wait for our cars,” said the labor-management planning team at Hyundai Motor’s Ulsan Plant. agreed to increase production in 2021.”
The management dismissed the labor union’s claim that the increase in production could lead to future employment problems. An official from Hyundai Motor said, “If we fail to adequately respond to current customer demand due to concerns about the future, this will lead to a worsening of the future situation.” revealed
If this situation continues, there is also a prospect that the supply method may change. An official from Hyundai Motor said, “If the supply of Palisade does not increase due to the delay in labor-management consultations and customer departure becomes a reality, the company has no choice but to consider special measures such as diversifying supply methods.”
This means that the Palisade production plant can be transferred to another domestic plant or overseas plant.
In the industry, both labor and management show a difference in position, and the prospect that it will take a considerable amount of time before actual Palisade production increases is gaining strength.
An automobile industry official said, “It is difficult to realize the labor union’s demand for Ioniq 7 allocation or the management’s notice of a change in the supply method.” It is a situation where we have to make concessions,” he said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.