Tentative Deal Reached After Strike-Wracked Negotiations

Hyundai Motor Co.'s South Korean labor union and management have tentatively reached a wage agreement, according to multiple reports. The deal, concluded early Tuesday at the 17th round of negotiations, comes after a year of labor unrest that included the union's first full-day strike in a decade.

The agreement includes a monthly base pay increase of 100,000 won (approximately US$72.20), a performance bonus exceeding 400 percent of monthly salary, and an additional payment of 12.5 million won, as reported by Yonhap News Agency, South Korea's leading wire service, citing the automaker's release and the union. The Straits Times, citing the union, also reported the base salary hike and a bonus equivalent to 400 percent of base pay, along with other cash payouts.

A key component of the tentative deal is the extension of the retirement age from the current 60 to 65, contingent on amendments to relevant laws and regulations, according to Yonhap. The Straits Times added that the retirement age extension would not reduce salary for the first few years after 60, and that 500 new technical workers would be hired from next year through 2028.

Strike Impact and Production Losses

The tentative agreement follows a period of intense labor action. Yonhap reported that the 400,000-member union staged a combined 60 hours of strikes this year, leading to approximately 120 hours of production disruptions across two shifts. The labor action included a full-day strike on Friday — the union's first such walkout in 10 years, as noted by both Yonhap and The Straits Times.

Industry sources cited by Yonhap estimate the strikes caused cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trillion won. The Straits Times also reported on the strikes, noting they were partial stoppages leading up to the full-day strike.

The agreement now heads to a union vote scheduled for Aug. 31. If approved, this year's wage negotiations at South Korea's largest automaker will be concluded, Yonhap reported.

Union Demands and AI Concerns

The wage dispute was driven by the union's demands for higher bonuses, an increased retirement age, and job protections against artificial intelligence and automation, as The Straits Times reported. The union had sought the company to set aside 30 percent of net income for bonuses and to guarantee job security, amid concerns over the growing adoption of robotics and AI on assembly lines.

Regarding AI-related job security, the two sides agreed to discuss employment matters when rolling out new businesses, according to the agreement seen by Reuters and reported by The Straits Times. Hyundai Motor did not immediately respond to a Reuters request for comment outside regular business hours, The Straits Times noted.

A Shared View on Technology

Yonhap reported that Hyundai Motor said management and the labor union shared the view that adopting advanced technologies, including physical AI and robotics, is essential to the company's future competitiveness and survival. The company stated that the two sides agreed to transparently share information on new projects and their implementation processes, and jointly respond to future industry changes.

The agreement comes as Hyundai Motor, which owns Boston Dynamics — the developer of the Atlas humanoid robot — plans to deploy humanoid robots at its U.S. manufacturing plant in Georgia starting in 2028, with plans to expand their use across production sites, according to both Yonhap and The Straits Times.