The Hindu Business Line : Hyundai move to sell spare parts unit upsets workers

Chennai May 2 A move by Hyundai Motor India Ltd to sell its spare parts department to Mobis India Ltd, a Hyundai group company and a vendor, has upset Hyundai's workers who have taken the issue to court.

According to Hyundai Motor officials, Mobis India is a part of Hyundai Mobis, a group company that has global presence with a turnover of $8.8 billion. It is an independent company that handles spare parts sales, exports and module parts manufacture. It handles the spare parts supply chain management for Hyundai globally.

According to sources among workers, the Works Committee, which represents the 1,800 confirmed employees at Hyundai Motor India, has objected to the car maker selling the Customer Care Parts, the spare parts division, to Mobis India.

It is learnt that over 160 employees under the spare parts division who reported for duty this morning were told that they have been shifted to Mobis India. This is located at the Irrungattukottai SIPCOT industrial park, adjacent to Hyundai Motor, about 35 km from here.

Legal remedy

The Works Committee has sought legal remedy and has also submitted a petition to the State Government's Labour Department for conciliation.

A copy of the lawyer's notice to Hyundai Motors says the writ petition was taken up on April 27 and the High Court ordered notice of motion, returnable June 4, as to why Hyundai should not be stopped from shifting the department to Mobis.

In the petition to the Labour Department, the workers' representatives have said that the Customer Care Parts accounts for over 20-25 per cent of Hyundai's profits. The sale would affect Hyundai's profits, which would have a direct bearing on the wage settlement and financial demands of the workers.

Official spokespersons at Hyundai, while declining to share the financial implications, said that the move was a business transfer aimed at improving efficiency of movement of spare parts.

Mobis India is a part of a company with global operations and expertise in supply chain management. This would leave Hyundai Motor India to concentrate on car manufacture and sales, its core business.

The decision does not affect workers whose service conditions and pay have been protected. The workers had been shifted with their consent and 13 workers who were qualified to be in manufacturing were retained at Hyundai Motor India.

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