Hyundai Motor’s union reaches tentative wage deal, averting more strikes

The Korean Metal Workers Union has reached a tentative wage agreement with Hyundai Motor, ending their first full strike in a decade and avoiding further production losses. The union had demanded higher bonuses, an increased retirement age, and safeguards against AI and automation. The agreement includes a ₩100,000 ($72.31) monthly salary increase, a performance bonus equal to 400% of the base pay, and additional cash and bonus payouts.

The retirement age will be extended from 60, with no salary reduction for the first few years post-60. Starting next year until 2028, 500 new technical workers will be employed. Hyundai has not yet commented on the agreement. The union had pushed for the company to allocate 30% of net income towards bonuses and guarantee job security amid growing concerns over robotics and AI's impact on assembly lines.

Both sides agreed to discuss job security related to AI when introducing new businesses. Hyundai, which owns Boston Dynamics, plans to introduce humanoid robots at its Georgia plant from 2028, intending to broaden their use across its production sites.