Some 40,000 Hyundai Motor employees launched a one-day strike in South Korea on Friday, hitting the automaker with a first full work stoppage of this scale in a decade.
According to the union representing the workers, the action involves both plant workers and office staff, and it’s expected to disrupt production across all of the group's South Korean facilities.
Negotiations ongoing since May
Discussions between management and union representatives began in May, but the two parties have yet to reach an agreement.
Key demands include a 50-percent increase in performance bonuses as well as a two-year extension to the retirement age. The latter measure would notably allow affected employees to maintain their current compensation level for longer.
The union considers that a bonus increase “is not an excessive demand” given Hyundai's profits. Meanwhile, the automaker told Agence France-Presse that it could not “accept the union's demands.”
Initial pressure tactics by the union hit in July, with workers striking for four hours a day over three days. This time, the movement expands to a full day.
Artificial intelligence enters the conflict
Beyond wages, the automotive industry's technological transformation is also fueling job security concerns. The increasing robotization of factories and rapid advances in artificial intelligence are among the main issues raised.
Hyundai notably plans to start deploying humanoid robots in its U.S. facilities starting in 2028. No comparable project has been announced for its South Korean plants so far.
At the same time, the development of artificial intelligence has contributed to the growth of several South Korean tech companies, which is also fueling certain wage demands. In May, Samsung Electronics employees called off a planned strike after reaching an agreement that provided substantial annual bonuses for certain workers.