More Strikes for Hyundai Motor in South Korea
July 5, 2004
Thousands of workers went on strike in South Korea, while China cracked down on corporate corruption.
About 40,000 unionized workers at South Korea's top automaker, Hyundai Motor, went on a two-day strike last week to demand a wage increase of more than 10 percent and better working conditions.
Foreign investors say labor unrest is a big deterrent to doing business in South Korea. Jiwon Lim, an economist with investment bank J.P. Morgan, says strikes are common in South Korea, occurring almost every spring and summer.
Ms. Lim warns, however, that the tendency of companies to give in to union demands could hurt the country's economy in the long run. "If the labor strike and negotiation outcome is labor-friendly, the competitiveness of Korea will be eroded."
Other companies in South Korea, including automaker Kia and top lender Koram Bank, also saw their workers strike last week.
Excerpt from an Asian business report, non-automotive content removed.
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