Labour discussions at Hyundai Plant evolve amid Union dynamics
Centre of Indian Trade Unions‑backed Hyundai Motor India Employees Union (HMIEU) demands recognition in wage talks, warns of strike as Hyundai defends its recognised union.
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In Chennai’s bustling automotive belt, simmering union unrest at Hyundai Motor India’s flagship plant near Sriperumbudur risks derailing operations. The dispute, reignited this week, pits the Centre of Indian Trade Unions (CITU)‑affiliated Hyundai Motor India Employees Union (HMIEU) against the company’s long‑standing recognition of the United Union of Hyundai Employees (UUHE).
HMIEU reportedly has said that 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 UUHE as its majority union.
Hyundai Motor India's spokesperson told Storyboard18 that as a responsible and ethical corporate entity and an employee friendly company, it continues to maintain a harmonious and inclusive work environment while adhering to all applicable Indian laws and internal protocols.
"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 recognised majority Union at Hyundai Motor India Limited and as per the Labour Department of Government of Tamil Nadu.
We remain focused on reaching a mutually beneficial outcome. HMIL leads the industry in offering among the best-in-class wages and benefits, and prioritises employee well-being and operational continuity as part of its long-standing commitment to India and the automotive industry. In relation to the CITU backed union, 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."
HMIEU apparently asserts that 1,356 out of 2,420 permanent employees have signed up with his union, clearly a majority and that Hyundai must either include HMIEU in ongoing wage negotiations or facilitate a secret‑ballot union vote.
Hyundai, however, stands firm. The automaker has reportedly emphasised that it only recognises UUHE, as confirmed by Tamil Nadu’s labour department and is in talks with UUHE for a long‑term wage agreement, extending from April 2021 to March 2024. With parallel litigation in the Madras High Court and allegations of HMIEU submitting forged membership lists, Hyundai rejects HMIEU’s claims as “unrecognised and sub‑judice”.
In December 2023, HMIEU issued a notice to Hyundai and urged the company to conduct a secret ballot to determine the majority union. Following which, 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. In response to that, in March 2024, Hyundai filed a complaint before a metropolitan magistrate and alleged that HMIEU had submitted false evidence, including forged signatures of some employees in the voter list.
It is to be noted that five months ago, Samsung’s Sriperumbudur plant also grappled with CITU‑backed union demands, though those were eventually resolved after a prolonged deadlock .
Toyota and Hyundai themselves have faced labour unrest in Chennai previously. In 2010 during a sit‑in protest over reinstatement demands, and again in 2012, when HMIEU-led strikes followed a wage pact signed with UUHE. Such standoffs have cost production up to 40% in a single day, in the past.
In 2012 also, HMIEU led a strike at Hyundai's Chennai plant, demanding the reinstatement of 27 dismissed workers, recognition of the union, and renegotiation of a recently concluded wage agreement. The strike, which began on October 30, 2012, was called off after the company revoked the suspension of 20 striking workers.
