Hyundai labour union launches partial strike over pay dispute

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Workers at Hyundai Motor started a three-day partial strike on Monday after months of pay negotiations with management failed to reach an agreement, deepening a labour conflict at South Korea's largest manufacturer.

Union members will cease production for four hours per day until Wednesday, with both the day and night shifts stopping for two hours. Employees from sales, maintenance, and the Namyang research and development centre are also expected to attend, depending on operational needs.

The union asks for a monthly basic wage rise of 149,600 won, a performance incentive equal to 30% of last year's net profit, an 800% bonus, an extension of the retirement age, and reinstatement of terminated workers. Management proposed an 89,000 won monthly wage rise, a performance incentive equal to 350% of monthly basic pay plus 10 million won, and 15 company shares, but the proposal was turned down.

Negotiations between the two parties began in May, but a fifth session of talks failed on July 8, clearing the path for strike action. According to local media sources, the walkout is likely to cost the corporation over 200 billion won (about $132 million) in lost production.

Union leaders also launched an overnight sit-in protest on Monday. Executive Vice President Choi Yeong-il expressed regret for the walkout, stating that the production delays occur at a vital moment as Hyundai prepares to launch new models in the second half of the year to boost revenues.

The issue also comes at a time when job security is a rising concern as artificial intelligence and robotics transform the auto sector. Hyundai intends to deploy humanoid robots, including Atlas, to its US plants beginning in 2028. While the corporation has not disclosed similar plans for its South Korean sites, observers anticipate such technology will be implemented later.

The union stated that it will decide on further industrial action on Wednesday, once the current three-day walkout ends.