Hyundai Motor’s union stages first full strike in 10 years over wage talks

On August 21, Hyundai Motor's South Korean union initiated its first full-scale strike in a decade, following the failure to reach an agreement on wages. The labor action, led by the Korea Metal Workers Union (KMWU), affects workers at Hyundai Motor, Kia Corp, and their suppliers. The one-day strike will culminate in a rally outside Hyundai Motor's headquarters in Seoul at 2 p.m., as announced in a leaflet posted on the union's website.

The strike reflects the escalating labor unrest in South Korea, a trend that gained momentum following the election of pro-labor President Lee Jae Myung in the previous year. Since late July, a series of partial walkouts have disrupted production, disrupting the assembly of 55,200 vehicles, valued at over 2.3 trillion won ($1.67 billion), according to estimates from Yonhap News Agency.

The labor action comes at a challenging time for Hyundai, which had previously forecasted missing its global sales target for the year due to intensified competition from China in Europe and slumping sales within South Korea. Hyundai's union is demanding the mandatory retirement age to be raised from the existing 60, aligning with President Lee's commitment to progressively increase the age limit in an increasingly aging population.

The union is also seeking an increase in bonuses to 800% of the monthly base salary from the current 750%, as well as guarantees to protect jobs as Hyundai integrates AI and automation into its production processes.

Despite the ongoing negotiations, Hyundai Motor and the union remain divided on the retirement age and bonus proposals. A Hyundai Union spokesperson, Kim Jin-wook, stated that the union is open to resuming wage talks but will consider strike plans if management fails to present forward-looking solutions. Hyundai Motor, which owns the humanoid robot company Boston Dynamics, has plans to deploy robots at its U.S. plant in Georgia by 2028, with aspirations to expand their utilization across its production sites.

Hyundai Motor has affirmed its dedication to finding solutions through dialogue, acknowledging the potential impact of strike action on its customers, partners, and operations. The automaker expressed concern over the critical juncture, emphasizing the need for both parties to collaborate and effectively navigate the global transition to future mobility.