Hyundai Motor union set to leverage strike against Atlas robot deployment - The Korea Times

Hyundai Motor union set to leverage strike against Atlas robot deployment

An Atlas humanoid robot stands on the stage during a press conference of Hyundai Motor Group and Boston Dynamics ahead of the CES tech show in Las Vegas, Jan. 5. AP-Yonhap

An Atlas humanoid robot stands on the stage during a press conference of Hyundai Motor Group and Boston Dynamics ahead of the CES tech show in Las Vegas, Jan. 5. AP-Yonhap

Potential strike adds burden to Hyundai Motor amid lingering trade risk

Hyundai Motor’s labor union is poised to use a potential strike as leverage to secure job protections against the carmaker’s planned deployment of Atlas humanoid robots in its manufacturing operations.

More than 86 percent of the carmaker’s roughly 40,000 union members voted in favor of the walkout, Wednesday, setting the stage for a contentious showdown over wages, job security and the upcoming robot deployment.

The union also gained the legal right to go ahead with the strike, Thursday, after a state labor mediation committee decided to suspend its arbitration process between the two sides.

While the carmaker’s annual wage negotiation has typically revolved around compensation, this year’s talks have hit a roadblock over a new core agenda on manufacturing automation amid the rise of physical artificial intelligence (AI).

Earlier this year, Hyundai Motor Group unveiled its plan to gradually deploy Boston Dynamics’ Atlas humanoid robots across its major production lines here and abroad, which has drawn severe backlash from its union.

Starting from 2028, the carmaker is scheduled to utilize Atlas at Hyundai Motor Group Metaplant America in Georgia in the U.S., for manufacturing efficiency and expand its usage to other factories.

Resisting the move, the union included a demand on “guaranteed employment and working conditions related to AI” for this year’s wage negotiation, threatening to stage a walkout unless the demand is not accepted.

Unionized workers at Hyundai Motor kick off their annual wage strike campaign during a rally outside the company's factory in Ulsan, May 13. Yonhap

The unionized workers are also calling for a performance bonus equivalent to 30 percent of the carmaker’s net profit last year, an amount estimated to exceed 3 trillion won ($1.94 billion) in total.

The union’s possible strike comes as a serious burden to the carmaker amid aggravating trade uncertainties abroad.

Hyundai Motor reported decent sales of 45.94 trillion won between January and March, up 3.4 percent from the previous year, but its operating profit sharply dropped by 30.8 percent in the aftermath of U.S. tariffs. The rapid rise of Chinese carmakers, particularly in the global electric vehicle industry, also poses a serious threat to the Korean automaker.

For Hyundai Motor’s management, the demand on guaranteed employment even after the robot deployment presents a particularly difficult challenge. While the firm’s labor and management have long negotiated over wages, bonuses and retirement benefits, demands tied to future AI robot deployment raise broader questions about workforce restructuring and long-term employment guarantees.

Union workers argue the introduction of humanoid robots could eventually alter workforce requirements across production lines, so they are seeking explicit assurances that technological upgrades will not lead to any job losses or a deterioration in working conditions.

Industry officials said the union is likely to continue pressing for stronger protections, as Hyundai Motor expands the use of automation technologies. Should management maintain its opposition to the union’s AI-related demands, the possibility of a strike is expected to increase significantly in the coming weeks.

Last year, Hyundai Motor ended up bearing a massive financial burden of some 400 billion won due to the union’s partial strike that lasted 16 hours.

“Both the carmaker’s management and union look to face an impasse in this year’s negotiation, as they are at odds in more diverse and complex agendas, such as factory automation and AI robots,” an official from the auto industry said.

Lee Min-hyung

Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.

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