SEOUL: Hyundai Motor’s labour union began a three-day partial walkout on Monday (Jul 13) after long-running wage negotiations with management broke down.
Workers at South Korea’s largest automaker will down tools for four hours a day until Wednesday as they demand a higher bonus, a pay rise and an extension of the retirement age.
The action comes amid concerns over job security as artificial intelligence transforms the industry.
The union and management have been in talks since May but have failed to reach an agreement, with a fifth round of negotiations collapsing on Jul 8.
“We are going to halt production lines for four hours a day – with day and night shifts each stopping for two hours – from Monday to Wednesday,” a union official told AFP.
Workers in sales and maintenance, and those at the Namyang research and development centre will also join the industrial action depending on their circumstances, the union said.
The action is expected to lose the company 200 billion won (US$132 million), according to Maeil Business Newspaper.
Union leaders also began an overnight sit-in protest on Monday.
Management proposed raising the base salary by 89,000 won per month, offering a performance bonus equivalent to 350 per cent of monthly base pay plus 10 million won and the granting of 15 company shares.
The union rejected the offer, and is demanding a 149,600 won increase in base salary, a performance bonus equivalent to 30 percent of last year’s net profit, an 800 percent bonus, an extension of the retirement age and the reinstatement of dismissed workers.
In a statement to employees at its Ulsan plant, executive vice president Choi Yeong-il expressed “deep regret” over the walkout.
“Production disruption should not take place at a time when we should be seeking an earnings turnaround through the launch of new models in the second half,” he said, according to Yonhap.
The strikes come amid growing concerns over advances in robotics technology.
Hyundai plans to deploy humanoid robots such as Atlas at its US plants starting in 2028. The company has not disclosed any plans to introduce them at its Korean plants, but analysts believe it is only a matter of time before they are adopted there.
The union said it would decide on further industrial action on Wednesday after the three-day partial walkout ends.
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