Hyundai Motor’s union stages first full strike in 10 years over wage talks
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The labour action adds to challenges for the carmaker, which in July said it expected to miss its global sales target in 2026.
PHOTO: REUTERS
- Hyundai Motor’s South Korean union held its first full strike in 10 years over stalled wage talks, demanding higher retirement age and job protections against AI and automation.
- The strike disrupted production of 55,200 vehicles worth over 2.3 trillion won and reflects growing labour unrest under President Lee Jae Myung’s pro-labour government.
- Hyundai plans to deploy humanoid robots by 2028, while the union seeks increased bonuses and retirement age aligned with national ageing policies; both sides remain apart but open to dialogue.
AI generated
SEOUL – Hyundai Motor’s South Korean union staged its first full strike in a decade on Aug 21 after wage talks stalled, as it seeks a higher retirement age and job protections against artificial intelligence and automation.
The Korea Metal Workers Union, the umbrella union that represents the workers, said in a leaflet announcing the strike that workers at Hyundai Motor, affiliate Kia Corp and their suppliers would hold a rally outside Hyundai Motor’s headquarters in Seoul at 2pm.
“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,” Hyundai union leader Lee Jong-cheol said from a stage at the rally.
About 40,000 Hyundai Motor union members were expected to join the walkout on Aug 21, while around 1,200 to 1,300 union members were set to attend the Seoul rally, a union official said earlier on Aug 21.
Members of other unions and those affiliated with the umbrella union were also seen joining, bringing the total expected attendance at the rally in the capital to about 3,000, the official added.
The one-day strike illustrates the growing labour unrest in South Korea following the election of pro-labour liberal President Lee Jae Myung in 2025.
It follows a series of partial walkouts since late July that have disrupted production of 55,200 vehicles worth over 2.3 trillion won (S$2.1 billion), according to estimates from Yonhap News Agency.
Humanoid robots and AI
The labour action adds to challenges for the carmaker, which in July said it expected to miss its global sales target in 2026, 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 per cent of monthly base salary from 750 per cent, 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 US plant in Georgia from 2028, with the aim of expanding their use across its production sites.
Union officials said AI would be a potential threat not only to production jobs but also research and engineering posts at carmakers.
“Even if AI is introduced, we are prepared to fight it – and prepared to win. We are concerned about the future generation,” Kim Byung-chul, a Hyundai Motor worker and vice-president of the Korean Metal Workers’ Union, told Reuters.
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. REUTERS
