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Hyundai Motor Group Will Have to Significantly Cut Its Manpower, Consultants Say
Due to Changing Production Technology
Hyundai Motor Group Will Have to Significantly Cut Its Manpower, Consultants Say
  • By Jung Min-hee
  • October 7, 2019, 09:08
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Hyundai Motor Group is likely to have to decrease its manufacturing workers by up to 40 percent due to automobile production technology.

Outside consultants of Hyundai Motor Group pointed out that the group’s required manpower can decrease by up to 40 percent as a result of a future change in automobile production technology.

“With the focus of the industry shifting from manufacturing to service and digitalization, the group is likely to have to reduce the number of its manufacturing workers by 20 percent to 40 percent,” they explained, adding, “Both the workers and the management need to share the recognition that the group will be jeopardized unless they are well prepared for Industry 4.0, and they need to achieve a higher level of competitiveness and a more stable employment based on more flexible and cooperative employment rules.”

They also suggested that the group should procure new green car parts based on open cooperation with auto parts suppliers and the workers and the management should conclude an agreement for a sustainable growth of their manufacturing facilities in South Korea. “Their joint committee based on mutual understanding and cooperation will be a perfect survival strategy,” the consultants stressed.

A manpower cut resulting from the production paradigm shift is an unavoidable situation for the group. Although the workers are well aware of the necessity, opinions are still split in the group. For example, the workers are claiming that the manpower cut should not exceed 20 percent whereas the management is regarding 20 percent as the minimum level. Within the labor union, those in charge of key internal combustion engine components are demanding job relocation in the event of more electric and hydrogen vehicle production.