Hyundai union's first full strike in 10 years halts 55,200 vehicles

Hyundai Motor's South Korean union walked off the job Friday for its first full-day strike in a decade, halting production at plants that have already lost 55,200 vehicles worth 2.3 trillion won ($1.67 billion) to partial walkouts since late July.

"The two sides remain apart over the retirement age and bonuses, among other issues," Kim Jin-wook, spokesperson for the Hyundai Motor union branch of the Korea Metal Workers Union (KMWU), said. The union is open to resuming wage talks but will discuss further strike plans if management fails to come up with "forward-looking proposals," he added.

About 40,000 union members joined the eight-hour walkout, shutting down finished-vehicle production lines at plants in Ulsan, Asan, and Jeonju. Workers from affiliate Kia Corp and their suppliers also participated, with roughly 3,000 union members expected at a rally outside Hyundai's headquarters in Seoul. The union is demanding the mandatory retirement age be raised from 60, bonuses lifted to 800 percent of monthly base salary from 750 percent, and guarantees protecting jobs as the company adopts AI and automation. It also seeks a 149,600 won increase in monthly base pay and 30 percent of last year's net profit as performance-based pay, citing Samsung Electronics as precedent. Management has rejected the performance-pay demand, which would cost at least 3 trillion won ($2.2 billion), and says a retirement-age extension at the company level is difficult before the law changes.

The strike adds pressure on Hyundai, which in July said it expected to miss its 2026 global sales target as Chinese automakers gain ground in Europe and domestic sales fall. The company, which owns humanoid robot maker Boston Dynamics, plans to deploy humanoid robots at its U.S. plant in Georgia from 2028 — a move that has intensified union concerns about automation displacing workers in one of the world's fastest-ageing countries.

Labor Unrest Spreads Under Pro-Labour President

The walkout reflects growing labor militancy in South Korea following the 2025 election of pro-labour President Lee Jae-Myung, who has pledged to gradually raise the mandatory retirement age. The union's demand aligns with that pledge, but Hyundai management argues the change must first be written into law before individual companies adopt it. The dispute is part of a broader wave of labor activism in South Korea's manufacturing sector, where unions are pressing for higher pay and stronger protections as companies accelerate automation.

Negotiations resumed Aug 18 after a 41-day break — the 16th round of main talks at the Ulsan plant — but ended without progress. Management reportedly offered no additional wage proposal, instead proposing to discuss retirement-age implementation and a wage peak system through a supplementary agreement after the law is revised. The union responded by scheduling four-hour partial strikes for Aug 19-20 and Aug 24-25, in addition to Friday's full-day action. The escalation pattern mirrors the 2016 dispute, when the union also moved from partial to full strikes before reaching a settlement, though this year's demands carry a distinctly new dimension: explicit job protections tied to AI and robotics deployment.

AI and Automation Loom Over Future Negotiations

The union's demand for job protections against AI and automation marks a new front in South Korean labor disputes. Hyundai's plan to deploy humanoid robots at its Georgia plant from 2028, with expansion across production sites, has made automation a central bargaining issue. The company said it remains committed to dialogue, warning that "strike action can impact our customers, partners and operations" at a critical time for the global transition to future mobility.

The last time Hyundai's union staged a full strike was during 2016 collective bargaining, when the automaker was navigating a different set of challenges. The current dispute carries higher stakes: production losses from partial walkouts alone have already reached 2.3 trillion won, and additional four-hour strikes are scheduled for next week if talks remain deadlocked. For investors, the strike compounds Hyundai's existing headwinds — intensifying Chinese competition in Europe, softening domestic demand, and the capital expenditure required for its robotics and EV transition. A prolonged walkout could also ripple through South Korea's auto supply chain, which supports thousands of parts makers and accounts for a significant share of the country's manufacturing output and exports.

This article is for informational purposes only and does not constitute investment advice.