Hyundai Motor Co. (005380) union workers in South Korea agreed to restart weekend shifts, ending a seven- week dispute that the company estimates cost 950 billion won ($854 million) in lost production.
Hyundai Motor Workers Union and the automaker have agreed to restart weekend overtime from next weekend, South Korea’s largest carmaker said in an e-mail. Union employees, demanding higher compensation, had refused to work overtime on weekends since March and the company estimates that cost lost production of 48,000 units, it said.
The agreement helps ease headwinds at the automaker, which is struggling with the won’s 25 percent gain against the yen in the past year. Hyundai yesterday reported first-quarter profit fell 15 percent to 2.09 trillion.
The Seoul-based company will pay 225,000 won on average per employee who works the weekend shifts that run for eight hours and nine hours, respectively, the company said. The new shifts, which are three hours longer than in the previous system, will increase productivity by 46 percent to build 6,900 units per day, according to Hyundai.
Hyundai and its union will make up the lost production with the new weekend shifts, the company said.
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