Revealed through Novo on the 29th... "Battery Module Factory Internalization at Ulsan Plant"
[Asia Economy Reporter Kim Ji-hee] The Hyundai Motor Union has expressed its intention to allocate the reduced workforce in the electric vehicle era to the battery module factory. This means maintaining employment by relocating surplus personnel after internalizing the battery module factory.
Lee Sang-soo, chairman of the Hyundai Motor Union, stated in the union newsletter published on the 29th, “Currently, Hyundai Motor has signed a Memorandum of Understanding (MOU) for battery technology supply, and subsequently, the battery module factory outside should be brought inside the Ulsan plant,” adding, “As internal combustion engine vehicles decrease, we plan to assign the surplus workforce to the battery module factory to maintain employment stability.”
Recently, Hyundai Motor Group has set a goal to launch 23 electric vehicle models by 2025 and leap to third place in the global market, accelerating its business system transformation. Chung Eui-sun, Vice Chairman of Hyundai Motor Group, also visited Samsung SDI’s Cheonan plant last month and held a private meeting with Samsung Electronics Vice Chairman Lee Jae-yong. This month, he met with LG Group Chairman Koo Kwang-mo to discuss ways to strengthen cooperation in electric vehicles.
However, the transition to electric vehicles inevitably involves a reduction in the workforce producing internal combustion engine vehicles. In response, the union has devised a strategy to internalize part of the process of processing battery packs into modules and installing them in vehicles, thereby utilizing idle personnel.
Electric vehicle production is scheduled to begin at Ulsan Plant 1 starting next year. Regarding this, Deputy Branch Chief Yoo Young-jun said, “There are talks that 60% of personnel in body, press, and painting departments will have to be reduced when electric vehicles come in,” adding, “Since this could cause serious problems for our union members’ employment, the branch has formed a Future Change Response Team to prepare.”
Furthermore, the Hyundai Motor Union emphasized regarding this year’s wage negotiations, “At the beginning of the executive’s term, we had considerable hope for this year’s wage negotiations as new cars were selling well, but due to the COVID-19 pandemic, production volume and sales profits have not been generated,” and “This year’s focus will be on employment stability and resolving senior contract worker issues.”
They added, “We will not engage in meaningless negotiations that only waste time.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
