Hyundai Motor Union Begins Three-Day Strike After Wage Talks Fail
SEOUL: The Hyundai Motor workers’ union has begun a three-day strike starting today after protracted wage negotiations with management failed to reach an agreement.
Workers at South Korea’s largest automaker will stop work for four hours a day until Wednesday to demand higher bonuses, salary increases and an extension of the retirement age.
The action comes amid growing concerns over job security following the rapid advancement of artificial intelligence (AI) technology, which is transforming the automotive industry.
The union and management have been holding negotiations since May, but failed to reach an agreement after the fifth round of talks on July 8 also ended in deadlock.
“We will halt production line operations for four hours a day, with day and night shifts each being stopped for two hours, starting Monday until Wednesday,” a union official told AFP.
The union also informed that workers in the sales, maintenance and Namyang Research and Development Centre divisions will participate in the industrial action according to their respective circumstances.
According to the Maeil Business Newspaper, the strike is expected to cost the company approximately 200 billion won (RM620 million).
Union leaders also began an overnight sit-in protest today.
Management had previously offered a basic salary increase of 89,000 won per month, a performance bonus equivalent to 350 per cent of the monthly basic salary plus 10 million won, as well as the granting of 15 company shares.
However, the offer was rejected by the union, which demanded a basic salary increase of 149,600 won, a performance bonus equivalent to 30 per cent of last year’s net profit, an 800 per cent bonus, an extension of the retirement age, and the reinstatement of retrenched workers.
In a statement to workers at the Ulsan plant, Hyundai Motor Executive Vice President Choi Yeong-il expressed regret over the strike action.
“Production disruptions should not occur when we need to restore profitability through the launch of new models in the second half of this year,” he said, as quoted by Yonhap news agency.
The strike comes amid growing concerns over advances in robotics technology.
Hyundai plans to deploy humanoid robots such as Atlas at its factories in the United States starting in 2028.
The workers’ union said it would determine its next course of industrial action on Wednesday after the three-day partial strike ends.
AGENSI