Unionized workers at Hyundai Motor in South Korea held a full-day strike on Friday, marking the first such labor action in 10 years after negotiations over wages and job protections reached an impasse. The walkout involved approximately 40,000 union members across the country, while an estimated 3,000 people, including workers from affiliate Kia Corp and various suppliers, participated in a rally outside the automaker's headquarters in Seoul.
The labor action follows the election of President Lee Jae Myung last year, whose administration has supported policies such as increasing the mandatory retirement age. The union is currently seeking to raise the retirement limit from 60 to a later age, arguing that experienced workers are being transitioned into contract roles rather than maintained as full-time staff. Additionally, workers are demanding protections against the increasing use of artificial intelligence and automation in manufacturing.
Beyond policy and automation concerns, the union is requesting an increase in annual bonuses to 800% of the monthly base salary, up from the current 750%. Hyundai Motor, which owns Boston Dynamics, has already announced plans to introduce humanoid robots at its Georgia facility in the United States starting in 2028, with the intent to expand their use globally. Management stated it remains committed to dialogue but warned that the strike could disrupt operations and impact partners during a transition toward "future mobility."
The labor action comes as Hyundai Motor faces increased market pressure, including rising competition from Chinese manufacturers in Europe and declining sales within South Korea. The company reported in July that it expects to miss its global sales targets for the year. This strike sets a precedent for how South Korean labor unions may interact with the government’s pro-labor stance and how they will negotiate the integration of humanoid robots and AI into the workforce. If these demands are met, they could alter labor costs for the automaker and influence how parts suppliers price their components.
What happens next depends on the response from Hyundai management. Union spokesperson Kim Jin-wook stated that while the union is open to resuming wage talks, members will discuss further strike plans if the company does not present what the union considers "forward-looking proposals." A specific date for the next round of negotiations has not been reported. The company’s planned deployment of humanoid robots in its U.S. plant remains scheduled for 2028.