For the second consecutive year, Hyundai Motor is facing labor strikes at its manufacturing plants in South Korea. But unlike previous disputes, this year’s conflict is no longer just about wages and bonuses. Workers are also demanding protections against potential job losses as the company accelerates the adoption of AI and humanoid robots. The union has launched a three-day strike, with employees walking off the job two hours before the end of each shift—a move expected to disrupt vehicle production.
Hyundai has been rapidly expanding factory automation in recent years. Through its subsidiary Boston Dynamics, the company plans to introduce Atlas humanoid robots into its U.S. manufacturing facilities starting in 2028. Initially, the robots will handle repetitive tasks such as sorting automotive parts before gradually taking on more complex manufacturing operations.
As a result, the labor union has introduced a new demand in negotiations: guarantees that AI and robotic automation will not threaten employees’ jobs or reduce their income.
The union stated: “Until labor and management reach an agreement, no AI- or technology-based robots should be introduced into workplaces.” The union’s key demands include:
- A 149,600 won increase in monthly base wages (approximately $100);
- A bonus equal to 30% of Hyundai’s net profit from the previous year;
- Raising the mandatory retirement age from 60 to 65;
- Job security guarantees as AI and robotic automation expand across Hyundai’s operations.
Hyundai has responded with an offer that includes:
- An 89,000 won increase in base pay;
- A 350% performance bonus;
- Additional cash incentives;
- Company shares.
The proposal was rejected by the union, triggering the strike. Hyundai’s 2025 strike had a significant financial impact. The company reportedly lost production of nearly 7,000 vehicles, resulting in more than 300 billion won in lost sales.
Analysts warn that this year’s work stoppage could once again affect production schedules and vehicle deliveries if negotiations remain unresolved.
The Hyundai dispute highlights a broader shift taking place across global manufacturing. Artificial intelligence and robotics are no longer viewed solely as productivity tools—they are becoming central topics in labor negotiations.
While unions have traditionally focused on wages, bonuses, and working conditions, they are now increasingly seeking guarantees that technological transformation will not come at the expense of human workers.
As AI adoption accelerates worldwide, Hyundai’s case may serve as an early example of how labor relations are evolving in the age of intelligent automation.
