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Mint
15 hours ago
- Automotive
- Mint
After Samsung, is Hyundai next? Strike threat looms over Chennai plant
Mumbai: South Korean automotive giant Hyundai Motor's India unit faces a potential worker strike at its plant near Chennai from a union backed by the Communist Party of India (Marxist) or the CPI(M), if the outcome of ongoing triennial wage negotiations is not to the union's satisfaction. The same union had earlier halted operations at the nearby manufacturing facility of another Korean giant, Samsung. Hyundai had received a temporary stay from the Madras High Court in March against any disruptions from workers, as per the company's writ petition, a copy of which Mint has seen, but that could change depending on the outcome of the wage negotiations. The Hyundai Motor India Employees Union (HMIEU), which is backed by the CPI(M)-affiliated CITU (Centre of Indian Trade Unions), has called for a secret ballot to establish itself as the majority union of Hyundai's factory workers in India, according to CITU's state president A. Soundararajan. The association also wants the company to engage with it for the wage negotiations. Also read | Mint Primer | Samsung strike: Can it crash Tamil Nadu's dream? 'The union is asking the management to recognize them as the majority union as now they have 2,000 workers associated under them," said Soundararajan. 'This can be done using a secret paper ballot." The current majority union for Hyundai's two integrated manufacturing facilities near Chennai is the United Union of Hyundai Employees (UUHE), which is not affiliated to any political party. UUHE has disputed HMIEU's claims that it holds majority affiliations from workers. 'We have 2,000 members and have all required documents to prove the membership. The negotiations with the management are ongoing," UUHE's president Ramanathan said. In India, a union that secures affiliation from 51% or more workers' is entitled to be recognized as the majority union by the employer. HMIEU is awaiting the conclusion of Hyundai's ongoing negotiations with UUHE before deciding its further course of action, which can include a strike, CITU's Soundararajan said. Hyundai negotiates three-year wage agreements with its workers in India. The last agreement was reached in May 2022. 'When the last settlement was done, the union (HMIEU) was not in majority, but now they are," Soundararajan said. Read this | Mahindra cements 2nd position as Tata Motors, Hyundai's sales continue to lag behind In an emailed statement to Mint on Thursday, Hyundai referred to HMIEU as an unrecognized minority union and said that 'in lieu of the ongoing litigation before the Court, HMIL cannot comment on any matters which are sub-judice". 'As a responsible and ethical corporate entity and an employee friendly company, Hyundai Motor India Ltd continues to maintain a harmonious and inclusive work environment while adhering to all applicable Indian laws and internal protocols," the company said in its statement to Mint. On the wage negotiations, the company said in its statement that long-term settlements are a standard industry-wide practice involving multiple rounds of discussions and negotiations. 'We are currently engaged in ongoing discussions with union representatives of UUHE, which is the recognized majority union at Hyundai Motor India Limited and as per the Labour Department of Government of Tamil Nadu," the company said. 'We remain focused on reaching a mutually beneficial outcome. HMIL leads the industry in offering among the best-in-class wages and benefits, and prioritizes employee well-being and operational continuity as part of its long-standing commitment to India and the automotive industry." Expert views Legal experts said while the company is currently protected against any worker strike due to the Madras High Court's orders, once the ongoing trade negotiations conclude, HMIEU will have legal recourse to address its grievances, if any. 'The injunction granted by the Madras High Court to Hyundai in March temporarily restrains the union from initiating strike action," said Rohitaashv Sinha, partner at law firm King Stubb & Kasiva, Advocates and Attorneys. 'However, such an injunction does not grant the company indefinite or absolute protection from future strikes." Also read | Hyundai Motor India profit may take a hit in Q4 as sales remain in slow lane If it is unhappy with the outcome of the wage negotiations, HMIEU can move the state's labour department to either challenge the wage settlement or seek voting by secret ballot to establish itself as the majority union, said Kinjal Champaneria, partner at law firm Solomon & Co. Shades of Samsung Hyundai is the second South Korean chaebol after Samsung to face worker displeasure in Tamil Nadu. Samsung India Workers' Union (SIWU), a worker union affiliated to CITU, had in September last year and again in March this year called strikes at the company's plant near Chennai. The union wanted to be recognized as the majority union, a theme repeating itself at Hyundai's manufacturing facility just half an hour's drive away. In fact, HMIEU had called for a strike to show solidarity with Samsung's workers in March, prompting Hyundai to move the Madras High Court for an injunction. Moreover, the union had also threatened to hold an indefinite strike from 5 April onwards to ask management to listen to its demands of recognising the union as the majority union. Likely impact of a strike A workers' strike at this juncture could hit Hyundai hard as the Irungattukottai plant with about 820,000-units annual capacity not only makes cars for India but for exports as well. The company shipped more than 160,000 cars overseas from this plant in FY25. The company has long been the second-largest seller of cars in India behind Maruti Suzuki. However, it has lost market share to domestic rivals Tata Motors and Mahindra & Mahindra in recent years. In fact, the two carmakers overtook Hyundai in sales last month, relegating it to the fourth position for the first time in more than a decade. While monthly sales in India's car market can be dynamic and Hyundai is likely to regain a podium place, the narrowing gap with peers in terms of sales volumes has got the company's headquarters at Seoul worried. And read | How Tamil Nadu wooed Nike, Crocs, Puma and Adidas Hyundai has a second manufacturing unit near Pune in Maharashtra, which it acquired from General Motors. The plant is undergoing renovation and is expected to be operational later this year with an annual capacity of 170,000 cars. The company's shares closed 1.16% lower on the BSE at ₹1,907.05 on Thursday. The stock has failed to sustain above its issue price of ₹1,960 since making its public markets debut last October amid stagnant sales and shrinking market share.
India Gazette
19-05-2025
- Politics
- India Gazette
NEP not saffronisation, but empowerment: BJP's Tamilisai Soundararajan slams TN govt over education row
Chennai (Tamil Nadu) [India], May 19 (ANI): BJP leader Tamilisai Soundararajan has hit out at the Tamil Nadu government led by Chief Minister M.K. Stalin, accusing it of misleading the public on the National Education Policy (NEP) and promoting discrimination in education. She strongly rejected the claim that the NEP aimed at 'saffronising' education and instead called it a policy full of 'good things' for students across the country. Speaking to ANI, Soundararajan said, 'I appeal to the Tamil Nadu CM that so many good things are in the NEP, but they are saying that we are saffronising it. On what basis are they telling it?' She further alleged that the state's Education Minister was not speaking the truth about the committee that drafted the NEP. 'The Education Minister of Tamil Nadu is lying, saying that there were people who followed the 'Right' ideology in the committee,' she said, adding that there was clear discrimination in how education was being delivered in the state. Soundararajan criticised the ruling DMK leadership for denying language learning opportunities to poor students while privileged children, including those of ministers, studied in CBSE schools. 'There is discrimination in education; rich people and the Tamil Nadu minister's children are studying three languages, which they are studying in the CBSE schools. They don't want the poor children to get educated in another language to a good standard...' she stated. Apart from domestic issues, Tamilisai Soundararajan also praised the performance of Indian MPs on the international stage. She appreciated their unity and patriotism, especially in representing the country's interests globally. 'I appreciate all the MPs as we all are united, they have razor-sharp voices. We are not representing the party. We are representing our country,' she said. She credited Prime Minister Narendra Modi for forming MP delegations that visited various countries to share India's achievements and values. 'Patriotism has led our country to be a victorious country against Pakistan... We thank our Prime Minister for forming such MP delegations to go to each and every country so that the good things of our country, the greatness of our army, and the good intentions of our country can be taken to the world...' she added. Her remarks came amid an ongoing debate between the Centre and several southern states, especially Tamil Nadu, over the implementation of the NEP and language policies. The National Education Policy (NEP), 2020, seeks to upgrade India's education system, with the aim of implementing a slew of reforms. (ANI)
Time of India
04-05-2025
- Politics
- Time of India
BJP's Soundararajan defends BJP-AIADMK tie-up, questions DMK on its alliance with Congress
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel BJP leader and former Telangana Governor Tamilisai Soundararajan on Sunday hit out at the Dravida Munnetra Kazhagam (DMK) for questioning the AIADMK-BJP alliance in Tamil Nadu, asserting that the DMK's own partnership with Congress raises questions about political to ANI, Soundararajan dismissed the DMK's criticism of the AIADMK-BJP alliance, which the DMK attributed to alleged corruption charges, by questioning the DMK's partnership with Congress, accusing them of causing harm to Sri Lankan Tamils "I am asking whether DMK has aligned with Congress due to pressure practice... Congress killed Tamil brothers and sisters. Why did DMK form an alliance with them? Why do they want to talk about the opposition alliance?" the BJP leader claimed that the DMK was rattled by the AIADMK-BJP alliance, formed to contest the 2026 Tamil Nadu Assembly elections."They are now jittery after AIADMK and BJP formed an alliance. It is our duty to form an alliance and fight against them. Now, they are not confident about their win. Their alliance is in a dividing stage," she said, urging the DMK to focus on its coalition rather than the opposition's on Tuesday, BJP leader Soundarajan stated that the BJP-AIADMK alliance will come to power in Tamil Nadu in the next elections and accused Tamil Nadu Chief Minister MK Stalin and his ministers of blocking the state's progress. She claimed that over nine ministers from the Tamil Nadu Government are facing corruption charges and are "swindling with people's money"."In the next elections, BJP, AIADMK and our alliance will come to power in Tamil Nadu.... The Tamil Nadu CM and his ministers are stopping the progress of the people of Tamil Nadu. More than nine ministers have been accused of corruption. They are swindling people's money," she said, alleging that the state government is misusing public money and blaming the Centre for covering up its failures.
