Hyundai Motor and Labor Union Reach Wage Deal After First Full Strike in Decade Over AI Concerns

Hyundai Motor union stages first full strike in 10 years

About 40,000 union members walked off the job Friday, halting production at plants in Ulsan, Asan, and Jeonju Hyundai Motor's South Korean union walked off the job for the first time in ten years on Friday, shutting down production at the automaker's main domestic plants amid a deadlocked wage dispute and worker demands for protections against artificial intelligence and automation, according to Reuters. The company said roughly 40,000 union members took part in the walkout, a group that spanned both production and office roles. All three of Hyundai's domestic facilities -- Ulsan, Asan, and Jeonju -- went dark for the full day, with neither the morning nor the afternoon eight-hour shift turning a wheel, leaving lines idle for sixteen hours in total, according to the Korea Herald. The strike marks the first eight-hour, full-day work stoppage since 2016. The full-day action came after a run of shorter stoppages -- ranging from two to six hours -- that stretched back to late July, pushing the union's total strike time for the year to 120 hours when counted across both daily shifts, according to the Korea Herald. The walkouts have disrupted production of 55,200 vehicles worth more than 2.3 trillion won ($1.67 billion), the company said, citing Yonhap News Agency estimates. The union is demanding a monthly base-pay increase of 149,600 won, a performance bonus equal to 30% of the company's 2025 net profit, an extension of the mandatory retirement age to as high as 65, and written guarantees protecting jobs as Hyundai expands its use of AI and robots. It is also seeking a 4.5-day workweek and a raise in annual bonuses to 800% of monthly base salary from 750%. At a rally outside Hyundai's Seoul headquarters, Hyundai Motor union leader Lee Jong-cheol said workers who had built the company over decades were being pushed into contract positions. "The key figures who made Hyundai and Kia the world's strongest company for 35 or 40 years are now being pushed into contract positions," Lee said. Union representatives warned that AI endangered white-collar workers in research and engineering, not just those on the factory floor. "Even if AI is introduced, we are prepared to fight it -- and prepared to win," Korean Metal Workers' Union vice president Kim Byung-chul told Reuters. Hyundai said it remained determined to resolve the dispute at the bargaining table. "Strike action can impact our customers, partners and operations. We are at a critical time when both sides must work together to successfully navigate the global transition to future mobility," the company said in a statement. The AI concerns reflect Hyundai's push into robotics. Hyundai acquired full ownership of Boston Dynamics, the humanoid robot maker, from SoftBank Group earlier this summer in a deal valued at roughly $325 million. The company has disclosed plans to put Boston Dynamics' Atlas humanoid robot to work at its Georgia facility beginning in 2028, starting with applications like welding and materials handling. The union plans to stage four-hour partial strikes on Monday and Tuesday. Kim Jin-wook, a union spokesperson, told reporters that the union remained willing to return to the bargaining table but would weigh additional strike action if management failed to produce substantive proposals.

Hyundai Motor's union stages first full strike in 10 years over wage talks

Hyundai Motor's South Korean union began its first full strike in ten years. Workers seek a higher retirement age and job protections against automation. This action follows earlier partial walkouts disrupting vehicle production significantly. The company faces challenges including competition and falling domestic sales. Hyundai Motor stated it is committed to finding solutions through dialogue. SEOUL - Hyundai Motor's South Korean union staged its first full strike in a decade on Friday after wage talks stalled, as it seeks a higher retirement age and job protections against artificial intelligence and automation. Striking workers at Hyundai Motor, affiliate Kia Corp and their suppliers will hold a rally outside Hyundai Motor's headquarters in Seoul at 2 p.m., the Korea Metal Workers Union (KMWU), the ⁠umbrella union ⁠that represents the workers, said in a leaflet announcing the strike posted on the union's website. The one-day strike illustrates the growing labour unrest in South Korea following the election of pro-labour liberal President Lee Jae Myung last year. It follows a series of partial walkouts since late July that have disrupted production of 55,200 vehicles worth over 2.3 trillion won ($1.67 billion), according to estimates from Yonhap News Agency. The labour action adds ⁠to challenges for the automaker, which in July said it expected to miss its global sales target this year, amid growing Chinese competition in Europe ⁠and falling sales in South Korea. Hyundai's union wants the mandatory retirement age raised from the current 60, in line with President Lee's pledge to gradually increase the limit in one of the world's fastest-ageing countries. The union is also seeking to raise bonuses to 800% of monthly base salary from 750%, and has demanded guarantees to protect jobs as the company embraces AI and automation. Hyundai, which owns humanoid robot maker Boston Dynamics, has said it plans to deploy humanoid robots at its U.S. plant in Georgia from 2028, with the aim of expanding their use across its production sites. Hyundai Motor union spokesperson Kim Jin-wook ⁠said the two sides remained apart over the retirement age and bonuses, among other issues. He said the union is open to resuming wage talks, but will discuss strike plans if the management fails to come up with "forward-looking proposals." Hyundai Motor said it is committed to finding solutions through dialogue. "Strike action can impact our customers, partners and operations. We are at a critical time when both sides must work together to successfully navigate the global transition to future mobility," it said in a statement.

Hyundai Motor, labor union tentatively reach wage deal - The Korea Times

Hyundai Motor said it and the union agreed to share information on new projects and jointly respond to future industry changes, including advanced technologies such as physical AI and robotics. The management and labor union of Hyundai Motor Co. tentatively reached a wage agreement early Tuesday following a series of strikes that caused production disruptions. The two sides reached an understanding at the 17th round of talks, agreeing to raise monthly base pay by 100,000 won ($72.20), provide a performance bonus of more than 400 percent of monthly salary and pay an additional payment of 12.5 million won, the automaker said in a release. The two sides also agreed to extend the retirement age from the current 60 to 65 if related laws and regulations are revised. If the agreement is approved in a union vote scheduled for Aug. 31, this year's wage negotiations at South Korea's largest automaker will be concluded. The 400,000-member union staged a combined 60 hours of strikes this year, resulting in about 120 hours of production disruptions across two shifts. The labor action included a full-day strike Friday, the union's first such walkout in 10 years. The strikes are estimated to have caused cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trillion won, according to industry sources. Hyundai Motor said management and the labor union also shared the view that adopting advanced technologies, including physical artificial intelligence (AI) and robotics, is essential to the company's future competitiveness and survival. "The two sides agreed to transparently share information on new projects and their implementation processes, and jointly respond to future changes in the industry," the company said. The agreement comes as Hyundai Motor, which owns Boston Dynamics, the developer of the Atlas humanoid robot, plans to deploy humanoid robots at its U.S. manufacturing plant in Georgia starting in 2028, with plans to gradually expand their use across its other production facilities.

Hyundai Motor's union reaches tentative wage deal, averting more strikes - The Korea Times

Hyundai said it plans to deploy humanoid robots at its U.S. plant in Georgia from 2028 and expand their use across its production sites. Hyundai Motor's Korean union said on Tuesday it has reached a tentative agreement with management, averting further production losses after staging its first full strike in a decade on Friday, following a series of partial stoppages. The union had demanded higher bonuses, an increase in the retirement age, and job protections against artificial intelligence and automation. The tentative agreement includes a base salary increase of 100,000 won ($72.31) per month plus a performance bonus equivalent to 400 percent of base pay and additional payouts in cash and bonuses. The retirement age will be extended from the current 60 upon amendment of a relevant law, without reducing salary for the first few years after 60, the union said. From next year until 2028, 500 new technical workers will be hired. Hyundai Motor did not immediately respond to a Reuters request for comment outside regular business hours. The union had demanded the company set aside 30 percent of net income for bonuses and guarantee job security, raising concerns over the growing adoption of robotics and artificial intelligence on assembly lines. Regarding union demands on job security related to AI, the two sides agreed to discuss matters related to employment when it comes to rolling out new businesses, according to the agreement seen by Reuters. Hyundai, which owns humanoid robot maker Boston Dynamics, has said it plans to deploy humanoid robots at its U.S. plant in Georgia from 2028, with the aim of expanding their use across its production sites.