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

On Tuesday, the South Korean union representing Hyundai Motor workers announced a tentative wage agreement with the company, preventing additional production losses following their first full-scale strike in a decade, which occurred on Friday due to a series of partial stoppages. The union's demands included higher bonuses, a higher retirement age, and protection against job loss from artificial intelligence and automation.

The tentative deal includes a salary increase of ₩100,000 (US$72.31) per month, a performance bonus equal to 400% of the base pay, and additional cash and bonuses. The retirement age will be raised from the current 60 years, with no immediate salary reduction for those reaching the new age. The union also stated that 500 new technical workers will be hired from next year until 2028.

Initially, Hyundai Motor was unresponsive to a Reuters request for comment outside regular business hours. The union had requested the company allocate 30% of net income for bonuses and guarantee job security, with concerns mounting over the increasing use of robotics and artificial intelligence on assembly lines. In terms of job security related to AI, the union and Hyundai agreed to discuss employment matters when introducing new businesses, according to the agreement provided to Reuters.

Hyundai, the owner of humanoid robot maker Boston Dynamics, announced plans to deploy humanoid robots at its US plant in Georgia from 2028, with intentions to expand their utilization throughout its production sites.