General Motorâ€™s Cadillac to Expand Globally: to Open Headquarters in New York
Published By : 24 Sep 2014 | Published By : QYRESEARCH
News has recently surfaced that Hyundai Motor Co, in association with its two sister-companies Kia Motors Corp Hyundai Mobis Co, is about to finalize a land deal in Seoul worth no less than $10 billion.
The deal could delay resolution of the recurrently litigious wage talks of Hyundai Motor Co. with its auto workers. A wave of anger seems to have passed the workers union with this news. The deal is to be finalized for a plot of land in the high-end Gangnam district of Seoul where the company plans to build its headquarters, a theme park complex and a hotel.
Shares of the three companies have been hit by a 10% decline since the time this news surfaced.
This week’s strike also coincides with Hyundai and Kia’s plans about building new factories in Mexico and China, where wages are lower than South Korea and export markets are closer.
Professor Park Tae-ju from the Employment & Labor Training Institute states that he expected Hyundai to finalize the wage deal before finalizing the land bid. Professor Park has previously advised Hyundai Motors about its two-shift system. Now that the land deal has surfaced before the wage talks have been confirmed, the situation could become more complicated for the company. The wage talks could drag on quite longer than expected, adds Park.
47,000 union workers in Hyundai’s South Korean unit staged a strike for the second day on Wednesday, this time against the land deal. Over the same issue, workers in Kia’s union also went on a partial strike on Wednesday.
Kia’s union members said that the workers are angered by the astronomical amount of money the company is ready to pay for a land deal. According to them, the company should invest in people rather than in infrastructure.