Hyundai Motor to abolish overnight shift

Hyundai Motor and its labor union have agreed to abolish the overnight shift and instead introduce two consecutive shifts per day with all workers to be off the lines by 1:10 a.m. at the latest, the automaker said Thursday.

The decision came after the two parties held long discussions on wages and working conditions for this year. It will also put an end to the ongoing strikes that have led to production losses. The tentative agreement is subject to approval from the labor union members through a vote scheduled for Monday.

Hyundai officials said it is a historical step as the agreement will put an end to the overnight shift system that has been maintained for 45 years since the opening of the carmaker’s Ulsan plant in 1967.

“This will drastically help reduce or even abolish overnight work in the auto industry including for parts companies and enhance the working conditions for employees,” a Hyundai official said.

The end to the overnight shift has been a pending issue since 2003 when a task force was organized, as the two parties failed to narrow their differences.

Under the agreement, the automaker will replace the current two 10-hour shifts with eight- and nine-hour shifts, starting March 4 next year. A two-week test run for the new system is scheduled for January.

Currently, the first shift begins at 8 a.m. and ends at 6:50 p.m. and the second shift runs from 9 p.m. to 8 a.m. This will change to the first shift beginning at 6:40 a.m. and ending at 3:20 p.m. with the second between 3:20 p.m. and 1:10 a.m.

But despite the deduction in total working hours, the union agreed to maintain current production volumes by improving productivity.

The management also promised to invest 300 billion won to help enhance productivity through new facilities and programs.

The management and labor union also agreed on other terms such as wages. They agreed to an increase of 98,000 won in basic pay.

An increase to the social contribution fund by 1 billion won to 5 billion won in a bid to support the development of local communities will also take place.

The plants will now return to full operations as Hyundai workers have gone on strike 27 times since July.

The automaker previously expressed concern that the strikes may result in a supply shortage overseas amid growing demand in the U.S. and European markets.

The number of parts made and shipped in Korea plunged 25.3 percent to 94,576 in July from 126,541 in June, according to the carmaker.

“Through negotiations, the management and labor union agreed to cooperate in order to overcome the internal and external economic crisis,” the Hyundai official said. “Getting rid of the overnight shift will help enhance the health and quality of life for workers and thereby help improve the quality of our products.” <The Korea Times/Kim Tae-jong>

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