Workers at Hyundai Motor have staged their first full strike in a decade after wage negotiations with management stalled, with the union demanding higher pay, an increased retirement age and protections against job losses linked to artificial intelligence and automation.

About 40,000 Hyundai Motor union members are expected to participate in the one-day walkout on Friday, while striking workers from Hyundai, affiliate Kia and parts suppliers gathered outside Hyundai’s headquarters in Seoul.

The protesters, wearing red headbands, chanted demands including direct wage negotiations between parts suppliers and automakers and an increase in the mandatory retirement age from 60.

“The key figures who made Hyundai and Kia the world’s strongest company for 35 or 40 years are now being pushed into contract positions,” Hyundai union leader Lee Jong-cheol said at the rally.

A union official said about 1,200 to 1,300 Hyundai workers were expected at the Seoul demonstration. Members of other unions and affiliates of the umbrella union were also expected to attend, taking the total turnout to about 3,000.

The strike follows a series of partial walkouts that began in late July and have disrupted production of about 55,200 vehicles worth more than 2.3 trillion won ($1.67 billion), according to Yonhap News Agency estimates.

The union’s demands come as Hyundai faces growing pressure to adapt to rapid advances in artificial intelligence, automation and future mobility.

The workers are seeking to increase bonuses to 800% of monthly base salary from 750%, while also demanding guarantees that the adoption of AI and automated systems will not lead to job losses.

Hyundai owns humanoid robotics company Boston Dynamics and has said it plans to deploy humanoid robots at its US plant in Georgia from 2028, with the intention of expanding their use across its production facilities.

Union officials argue that the threat from AI extends beyond factory-floor jobs to research and engineering positions.

“Even if AI is introduced, we are prepared to fight it — and prepared to win. We are concerned about the future generation,” said Kim Byung-chul, a Hyundai worker and vice president of the Korean Metal Workers’ Union.

The union’s demand for a higher retirement age also aligns with President Lee Jae Myung’s pledge to gradually raise the retirement limit as South Korea confronts one of the world’s fastest-ageing populations.

The industrial action adds to challenges facing Hyundai, which said in July that it expected to miss its global sales target for the year amid intensifying competition from Chinese automakers in Europe and weaker sales in South Korea.

Hyundai union spokesperson Kim Jin-wook said workers remained open to resuming wage negotiations but would consider further strike action if management failed to present what he described as “forward-looking proposals.”

Hyundai said it remained committed to resolving the dispute through dialogue.

“Strike action can impact our customers, partners and operations. We are at a critical time when both sides must work together to successfully navigate the global transition to future mobility,” the company said in a statement.

(Arise News)

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