Another unrest seems to be brewing in the Sriperumbudur industrial corridor after the recent Samsung saga.

As Hyundai looks to ink a new wage agreement with United Union of Hyundai Employees (UUHE) — the management-backed labour union — the CITU-backed Hyundai Motors India Employees Union (HMIEU) has put out a strike notice stating that 1,457 out of the 2,420 permanent employees have signed up with them. This gives HMIEU a clear majority over UUHE, the notice signed by by union leader Muthukumar states, adding that Hyundai must either include HMIEU in ongoing wage negotiations or facilitate a secret-ballot union vote.

Hyundai Motor India (HMIL) operates its car manufacturing plant in Sriperumbudur, near Chennai, and this comes at a time when long-term wage settlement talks are going on at the facility.

The CITU, which was involved in the recent Samsung strike on similar grounds, issued a strike notice on June 23 stating that it has the majority and should also be part of the wage negotiations.

“Out of the 2,450, over 1,300 are with us,” E Muthu Kumar, President, HMIEU, told businesssline. “How can the company deal with the other union when we have the majority,” he added.

“HMIEU has issued a strike notice against Hyundai’s repeated and unlawful behaviour. Decisions must reflect the will of the majority workers,” the notice stated.

However, company sources dispute the claim saying not more than 200 employees are with CITU. HMIL has not recognised HMIEU.

In the strike notice, Kumar proposes two ways to settle the dispute. “The first is to verify membership documents submitted by both unions. If inconclusive, conduct a secret ballot election among workers to identify the majority union,” he said.

The notice also stated that core issues go beyond just wage revision and includes increased workload with reduced workforce, introduction of automation and Artificial Intelligence without reduction in working hours, forced overtime without negotiation, among others.

In relation to this issue, the HMIL has said it is an unrecognised minority union. In lieu of the ongoing litigation before the court, the company cannot comment on any matters which are sub-judice, the company added.

“Courts, including the Supreme Court and High Courts, have repeatedly recommended the secret ballot method when determining majority status in similar cases at Yamaha, Foxconn, Indian Railways, and Neyveli Lignite Corporation. In 2015, for instance, at Foxconn, CITU was declared the majority union after a secret ballot. A similar outcome occurred at Yamaha,” the notice stated.

The previous three-year wage settlement at HMIL was implemented with retrospective effect from April 1, 2021, and remained effective until March 31, 2024. The package saw a salary increase of ₹28,200 per month (in the ratio of 55 per cent, 25 per cent and 20 per cent for a period of three years) amongst other benefits. As many as 2,239 technicians of the company benefited from the revised wage package, according to the 2022 agreement.

Published on June 26, 2025