Hyundai Motor Union Launches First Full Strike in Decade Over Wages, AI Job Risks

Hyundai Motor workers in South Korea launched their first full-scale strike in a decade on Friday after wage negotiations stalled, with union members demanding higher bonuses, an increased retirement age and stronger job protections amid growing use of artificial intelligence and automation.

Around 40,000 Hyundai Motor union members were expected to participate in the one-day walkout. Workers from Hyundai, affiliate Kia Corp and parts suppliers also gathered outside Hyundai Motor’s Seoul headquarters, with the rally expected to draw about 3,000 participants, including members of other unions.

The strike follows a series of partial walkouts since late July that have disrupted production of approximately 55,200 vehicles valued at more than 2.3 trillion won ($1.67 billion), according to estimates cited by Yonhap News Agency.

Among the union’s main demands is an increase in the retirement age from the current 60, aligning with President Lee Jae Myung’s pledge to gradually raise the limit as South Korea confronts a rapidly ageing population. Workers are also seeking bonuses equal to 800% of monthly base salary, up from 750%.

Job security has become another major issue as Hyundai expands its investment in AI, robotics and factory automation. The automaker, which owns humanoid robot developer Boston Dynamics, plans to introduce humanoid robots at its Georgia plant in the United States beginning in 2028 before potentially expanding their use across other production facilities.

Union spokesperson Kim Jin-wook said management and workers remained divided over retirement and bonus proposals. While the union remains willing to resume negotiations, it could consider further strike action unless Hyundai presents more acceptable terms.

The labor dispute comes at a challenging time for Hyundai Motor. The company said in July that it expected to miss its global sales target this year as it faces intensifying competition from Chinese automakers in Europe and weaker domestic sales.

Hyundai said it remains committed to resolving the dispute through dialogue, warning that prolonged industrial action could affect customers, suppliers and operations as the automaker navigates the global shift toward future mobility.