I

Background of the Case

On April 10, 1989, a labor rebellion at the shipyard of Hyundai Heavy Industries Co. at
Ulsan South Korea happened. Police said 700 workers were arrested at the Hyundai
shipyard in Ulsan, about 150 miles southeast of Seoul, and Korean news reports said at
least two dozen people were injured.
To protest the police action in Ulsan, radical students and workers battled riot police
today in six cities, some firebombing Hyundai offices and showrooms of the
conglomerate's auto division. The shipyard strikers, demanding recognition of their
union, have staged sporadic work stoppages since Dec. 12, and at least 400 people
have been injured in related violence.
Riot troops entered the shipyard by breaking through barricaded gates with heavy
equipment. Some even arrived by boat. Firing tear gas, they raced up fire escapes and
down hallways of company dormitories to drag out hiding strikers.
Windows were smashed by rocks and clubs as police entered the buildings, according
to the South Korean news agency Yonhap.
Tear gas spewed over the shipyard and into nearby residential areas, causing citizens
to complain. Yonhap said about 2,000 relatives and supporters of the strikers were also
dispersed by tear gas.The shipyard is owned by the Hyundai Group, one of the nation's
largest conglomerates, which produces cars, ships, electronics and other products.
They resented the paternalism of South Korea corporate management. In return for the
security of steady employment, the South Korean worker has traditionally been
expected to suffer a grueling and sometimes erratic job schedule. Although the average
wage had more than doubled in the last decade, the workers frustration over their lack
of individual say and benefits likewise rose.
Lee Won Gon, the leader of the strike stated that they want better working condition and
status for workers and have been looked down in a very long time
Hyundai has refused to recognize the union at the shipyard, and up to 5,000 of its
22,000 workers have clashed with pro-management workers. The Labor Ministry said
today that Hyundai has lost $6 million daily as a result.
About 1,000 students at Ulsan University were dispersed by riot police using tear gas
today as they tried to march from the campus to the shipyard to join the strikers, Yonhap
said.

At Changwon, a south coast city, about 1,800 workers at Hyundai Precision Co., a
subsidiary of the conglomerate, rallied in support of the striking workers and demanded
that the government stop suppressing the union.

II
Statement of the Problem

The workers have erratic job changes that cause grueling effects on their job even
though they had high wages.
Hyundai have ignored the unionization of workers at one of their shipyards thus creating
a conflict between the company and the workers
How would Hyundai prevent this from happening in the future?

III
Statement of the Objectives

To prevent similar strikes that causes a big loss for the company
To adapt in erratic job schedules without overextending the supposing efforts of the
workers
To listen with the employees with any ways possible to prevent the strike from
happening again

IV
Statement of Areas of Consideration
SWOT Analysis

Strength

Their big company is easy to cope

with heavy losses because of strike
They had the power to ignore the
voice of the strikers
Pro management workers defends
Hyundai with the commotion that
happened

Weakness

Opportunity

They could learn from this mistake

and prevent it in the future
It could strengthen their bond with
the pro management employees
They could adapt easily if this
happens again in the future

They suffer heavy losses because

of the strike
They ignore the voice of the
workers thus creating a strike
Their might have been a cool off but
it will create more losses as the
time pass by

Threat

This could bankrupt their branch at

Ulsan, South Korea
This could affect their reputation as
a big company
This could create bitterness with the
employee and cause a mass lay-off

V
Statement of Alternative Course of Action

PROS

They had pro management employees that still supports them which they could
insist on their regular process of paying the workers and giving their benefits
The strike can make the company more sensitive on listening on the side of the
workers which can help them prevent this if it happens again
They could create different shifts that can fill the empty shifts without
overextending the time on which the workers are working

CONS

The people that had executed the strike could be granted of what they want such
as better working conditions and benefits but the company will even have a
greater loss because of the strike that happened
If they will not listen and insist of their own traditional way, it will create
unproductivity in the company such as mass lay off, another strike, delays in
working days etc.
They could create other shifts to prevent unintended overtimes or unexpected
working hours so they could also prevent exhaustion or gruelsome behavior from
the workers but it will cause more expenses, taking note that they are just
currently rising from a strike that causes a heavy loss.

VI
Statement of Conclusion

Therefore we conclude that the strike that had occurred creates heavy losses
which could have been prevented if they did not ignore the voice of the workers and
came up with a bargaining agreement which discusses about their shifts and benefits or
bring it on the part that they will be force on labor arbitration which will decide on the
best solution that will benefit both of them

VII
Statement of Recommendation

We recommend that they need to be more sensitive on the voice of the employee
on which they need to take action if they demand something to come up with a
collective bargaining agreement to prevent any strikes.
We also recommend that they need to make more shifts to prevent erratic
schedules which can over exhaust the workers.

A CASE STUDY
OF
HYUNDAI GROUP

BY:
JESSIE KARL ASPERA
BARRY BARINO
EDNIEL SENOBIN
PRINCESS HANESSA ANTIVO
LYKA SANTOS

SUBMITTED TO:
VICENTE AUXILLIO P. MILITANTE