Partial Strike Hits Hyundai Plants Over Wages and AI Fears

The union of Hyundai Motor workers has launched a three-day partial strike after wage negotiations with management collapsed. Workers at South Korea's largest automaker will stop production for four hours daily until Wednesday, demanding higher wages, better bonuses, and retirement age extension.

Strike Details and Worker Demands

The strike comes amid growing concerns over job security as artificial intelligence and robotics reshape the automotive industry. The union has been in talks with management since May, but five rounds of negotiations failed to produce an agreement, with the latest round breaking down on July 8.

Management offered an 89,000 won monthly base salary increase, a performance bonus equivalent to 350% of the monthly base salary, and 15 company shares. The union rejected this proposal, demanding a 149,600 won monthly increase, bonuses equal to 30% of last year's net profit (800% of base salary), an extended retirement age, and the reinstatement of laid-off employees.

Expected Losses and Production Impact

Hyundai is expected to lose approximately 200 billion won (USD 132 million) due to the strike, according to local reports. Executive Vice President Choi Yong-il expressed deep regret over the decision, stating that production disruption comes at a critical time when the company should focus on launching new models in the second half of the year.

The strike involves production line workers, as well as employees in sales, maintenance, and the Namyang Research and Development Center, depending on their conditions. Union leaders also initiated overnight strikes on Monday.

AI and Job Security Concerns

These actions reflect heightened anxiety about technological disruption, particularly as Hyundai plans to deploy humanoid robots like Atlas in its US plants by 2028. Although the company has not announced similar plans for its Korean factories, analysts believe it is only a matter of time. The union will decide on any further actions this Wednesday.