Strike at parts supplier halts production at Hyundai

A work stoppage at the Yoosung Enterprise, which supplies 70% of the piston rings for diesel engines produced by Hyundai Motor, brought a halt to two diesel engine lines at the company’s Ulsan plant in South Korea. Hyundai Motor said it expected a production loss of 48,000 vehicles, valued at 827 billion Korean won (US$756.4 million), if supplies from Yoosung are halted for the rest of the month. Output is expected to resume as soon as the work stoppage is broken up by riot police. The strike at the Yoosung Enterprise started on May 18, after management and workers failed to agree over wage and new shift implementations. (May 24,2011)