Hyundai Motor India — the country’s second-largest carmaker — could be headed for labour unrest at its Chennai plant, with one of its unions claiming that it enjoyed the support of the majority of the workers and should represent them in the ongoing wage negotiations.
The Hyundai Motor India Employees Union (HMIEU), backed by the Centre of Indian Trade Unions (CITU), said it will be “forced to take the protest route” if the management fails to accede to its demands, and that it will announce its future course of action on Monday. The company recognises the United Union of Hyundai Employees (UUHE) as its majority union.
The development at Hyundai Motor India comes months after another South Korean giant, Samsung Electronics, witnessed a prolonged strike at its plant in Sriperumbudur near Chennai, on the call of a CITU-backed union.
In response to FE’s query, Hyundai Motor India said its long-term wage settlements follow industry-standard practices and involve several rounds of discussions. “We are currently engaged in discussions with union representatives of UUHE, which is the recognised majority union at Hyundai Motor India Limited and as per the labour department of the Government of Tamil Nadu. We remain focused on reaching a mutually beneficial outcome,” the company said in an e-mail.
However, HMIEU representatives claim they now command majority support among the workers. “Out of 2,420 union workers, 1,356 are with our union,” said E Muthukumar, CITU Kancheepuram secretary and president of HMIEU. “The majority of the workers are with us.”
Muthukumar alleged that Hyundai management has been signing key agreements — including wage pacts — while ignoring the union that represents the majority. “We tolerated it for long, but not anymore,” he said. HMIEU is pressing for a secret ballot to prove it holds majority support among the factory’s unionised workers.
In December 2023, HMIEU issued a notice to Hyundai stating that it held majority membership among workmen and urged the company to conduct a secret ballot to determine the majority union. In January 2024, the union filed a writ petition before the Madras High Court seeking directions to the company to conduct the election under court supervision.
However, in March 2024, Hyundai filed a complaint before a metropolitan magistrate, alleging that HMIEU had submitted false evidence, including forged signatures of some employees in the voter list.
Regarding the CITU-backed union’s majority claim, the company said, “It is an unrecognised minority union and, in lieu of the ongoing litigation before the court, HMIL cannot comment on any matters which are sub-judice.”
Muthukumar said Hyundai must either negotiate with the majority union, hold joint talks with both unions, or conduct a secret ballot to establish each union’s strength. “If the management is not ready to negotiate, we will be forced to take the protest route,” he said. He also sought expediting the case pending before the Madras High Court.
“As a responsible and ethical corporate entity and an employee-friendly company, Hyundai Motor India Limited continues to maintain a harmonious and inclusive work environment while adhering to all applicable Indian laws and internal protocols,” the company said.
In July 2022, Hyundai signed a long-term wage agreement with UUHE, covering the period from April 1, 2021 to March 31, 2024.