Hyundai Car Plant Idled by Strikes : Seoul Threatens to Crack Down if Unions Fail to Reach Accord

Hyundai Motor Co. said today that strikes at its 20 parts factories have forced it to shut down indefinitely, part of the widespread labor protests battering the South Korean economy.

The government threatened to crack down on labor protests if unions failed to negotiate settlements and purge radicals from their ranks.

Hyundai, South Korea’s largest auto maker and a recent front-runner in the U.S. subcompact market, resumed operations Monday after strikes last week, but said new strikes at parts plants brought its assembly lines in Ulsan to a halt.

Officials at Hyundai said they feared a heavy loss in their car exports. Hyundai had planned to ship about 250,000 cars to the United States this year.

Labor Minister Lee Hung Kee said in a special announcement earlier in the day, “Government authorities will be forced to take legal action if rampant labor strikes spread beyond control and threaten the nation’s daily life and economy.”

Lee’s warning followed clashes Monday between police and striking coal miners in eastern Korea. Thirty people were injured when police fired tear gas to disperse militant miners who hurled rocks and took control of rail lines.

Government officials said nearly 240 strikes had broken out in the last five weeks, mostly in the manufacturing and transportation sectors, and that about 130 strikes are still under way. Labor disputes have crippled factories run by such leading conglomerates as Daewoo, Samsung and Lucky-Gold Star.

Lee said the labor unrest is seriously affecting South Korea’s export-oriented economy. He said the nation had suffered about $130 million in lost production and $54 million in export losses.

Factory workers, coal miners, and bus and taxi drivers are striking for higher pay, better working conditions and the right to form free labor unions. No official figures are available on the number of strikers, but newspaper accounts put the total at 60,000 to 65,000.

Union activity in South Korea traditionally has been strictly controlled, and strikes were virtually outlawed. Labor strife has increased since President Chun Doo Hwan gave in to public pressure in July and agreed to direct presidential elections and other democratic reforms.

Korean workers put in the longest work week in the world last year at 54.4 hours, but their average monthly pay was less than $370.