A section of workers at Hyundai Motor India Ltd’s factory in Sriperumbudur, Chennai struck work on Tuesday.

Hyundai Motor India, in a statement, said around 130 workers from the CITU-affiliated Hyundai Motor India Employees Union (HMIEU) “disrupted work illegally” at its factory, affecting production for about 78 minutes. The company produces 2,000 cars every day and the production loss because of work disruption is estimated to be 59 cars, said the statement.

However, according to HMIEU representatives, around 700 workers are participating in the “strike”, across shifts. The demands include reinstatement of 27 suspended workers and salary negotiations. The Korean car manufacturer has a three-year wage settlement with another union, the United Union of Hyundai Employees (UUHE), which the company has recognised. HMIEU is not recognised by the company.

The statement says: “Hyundai Motor India has already recognised UUHE as the official union, which has a majority membership of over 1,300 permanent workers amongst a total strength of 2007 permanent workers. The company is categorical that it will not recognise any other union.”

HMIEU says the strike will continue on Wednesday too.

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