The turbulence that emerged among Chinese domestic tire manufacturers at the beginning of the year has started to spread to international companies.
Grudge over Reduced Work Shifts
On March 1, there was news that workers at global tire manufacturer Hankook’s Jiaxing factory staged a strike over grudge over the reduction of shifts.
On March 2, a source with the factory told to the reporter of tireworld.com.cn that around 6oo to 700 workers were unsatisfied with the changing the shifts from four to three. They started to refuse to work and call for a meeting with the leadership of the factory to address the problem.
It is learned that the factory announced the change out of a sudden without notifying the workers in advance or hearing their opinions.
The change increased the their workload and reduced the time for rest, which may lead to more frequent occurrence of accidents, the workers argued.
After the production halt, the leaders of the factory did not come out immediately. A few directors of workshops tried to persuade the workers back to their post but in vail.
On the afternoon of the strike, the leaders of the factory met the workers. But it is yet unknown about the result of the negotiation.
Fear of Downsizing
The strike was apparently triggered by the change of shifts; however, it may be related to Hankook’s downsizing move in China.
At the end of February, there was news that Hankook’s factory in Huai’an, east China’s Jiangsu Province, planned to lay off 300 workers and change the four shifts to three.
At the end of 2015, news spread that Hankook’s factory in southwest China’s Chongqingmunicipality would reduce tire output due to the sluggish market and may cut down the number of employees.
“The problem is very serious. Almost every factory is downsizing,” a tire dealer told the reporter after learning about the strike in Jiaxing.
“The market is too sluggish,” he said.
The volatility of the domestic economic situation has been felt in the tire industry, affecting the operation of every tire company. This is a serious problem facing China’s tire industry this year.
In this respect, the situation of Hankook epitomizes the current status for many Chinese tire companies.
