Hyundai South Korean Union Stages First Full Strike in 10 Years Over Pay

Post by : Saif

Hyundai Motor's South Korean union staged its first full-day strike in a decade on Friday after negotiations over wages and other demands failed to reach an agreement.

Around 40,000 union members were expected to take part in the walkout, while thousands of workers and union supporters gathered outside Hyundai Motor's headquarters in Seoul.

Workers from Hyundai Motor, affiliate Kia and supplier companies joined the rally, wearing red headbands and calling for better pay, stronger job protections and changes to retirement rules.

Workers Demand Higher Retirement Age

One of the union's main demands is an increase in the mandatory retirement age from the current 60.

Union leaders argue that experienced workers who contributed to the growth of Hyundai and Kia should not be pushed into less secure contract positions as they approach retirement.

The demand also comes as South Korea faces one of the world's fastest-ageing populations. President Lee Jae Myung has supported plans to gradually increase the retirement age.

Union Seeks Higher Bonuses

Workers are also demanding an increase in annual bonuses from 750% to 800% of their monthly base salary.

The union has also called for stronger employment guarantees as Hyundai increases its use of artificial intelligence, automation and robotics in manufacturing.

Union representatives say technological changes should not result in the loss of jobs or weaken employment conditions for existing workers.

Earlier Walkouts Disrupted Production

Friday's full strike follows several partial walkouts that began in late July.

According to estimates from Yonhap News Agency, the earlier industrial action disrupted production of around 55,200 vehicles, with the affected vehicles valued at more than 2.3 trillion won, or about $1.67 billion.

The latest strike adds pressure on Hyundai as the company faces challenges in international markets.

Hyundai said in July that it expected to miss its global sales target for the year amid stronger competition from Chinese automakers in Europe and weaker sales in South Korea.

AI and Automation Become Key Issue

Job security has become an important part of the dispute as Hyundai moves toward greater use of advanced technology.

Hyundai owns Boston Dynamics, a company known for developing humanoid robots, and has announced plans to introduce humanoid robots at its US plant in Georgia from 2028.

The company intends to expand the use of such technology across its production facilities over time.

Workers are seeking guarantees that increased automation will not lead to widespread job losses or deteriorating employment conditions.

Read more: Hyundai Motor Group Plans Big AI and Robot Investment in South Korea

Hyundai Calls for Dialogue

Hyundai Motor said it remained committed to resolving the dispute through negotiations.

The company warned that strike action could affect customers, business partners and production operations.

Management said both sides needed to cooperate as the automotive industry undergoes a major transition toward future mobility.

Union spokesperson Kim Jin-wook said workers remained open to restarting wage negotiations but warned that further strike action could be considered if management failed to present proposals acceptable to employees.

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