Disagreements between Hyundai Motor Co. and its union are delaying production at the company’s Ulsan complex, causing shortages in domestic and export demand.

According to the company, productivity of the plant producing small vehicles has fallen to about 33.5 percent as workers are refusing to comply with its proposal of moving some of the plant’s workers to other parts of the complex.

With a significant proportion of the facility’s 3,000 workers said to be receiving training during work hours, the company estimates that Veloster and Accent output has fallen short of requirements by about 130,000 units.

Under the labor-management agreement, the company is required to negotiate the man-hours at a plant before a new model is put into production.

During the negotiations, the company suggested that some of the surplus workforce arising from the reduction in manpower required due to advances in production technology be put to work on other plants.

The union, however, refused the proposal demanding that job security for regular and non-regular workers must come first.

By Choi He-suk (cheesuk@heraldcorp.com)