Photo courtesy of Hyundai Motor

 

 

[Alpha Biz= Paul Lee] The labor union at Hyundai Motor has finalized its demands for this year’s wage and collective bargaining negotiations, signaling a broader agenda that includes profit-sharing with subcontractor workers and job security amid the expansion of artificial intelligence (AI) and automation.

The union approved its proposal at a delegates’ meeting held on February 16 in Ulsan.

A key demand is to expand the scope of performance-based bonuses beyond union members to include employees of partner companies. The union is calling for 30% of the company’s net profit from the previous year to be distributed as bonuses, applied equally to both regular employees and subcontractor workers.

Job security in response to industrial transformation is also a central issue. The proposal calls for guarantees on employment and working conditions in the face of increasing AI adoption, as well as measures to stabilize jobs through the attraction of new business lines and expanded domestic investment.

The demands come as Hyundai Motor Group accelerates the adoption of physical AI technologies, including humanoid robots such as Atlas developed by Boston Dynamics, and transitions toward smart factory systems. The union has previously stated it would oppose the deployment of such robots on production lines without prior agreement.

Additional demands include a base wage increase of KRW 149,600 (excluding seniority increments), raising the bonus rate from 750% to 800%, the introduction of a fully fixed monthly salary system, reduced working hours without increased labor intensity, extending the retirement age to up to 65 in line with pension eligibility, and additional hiring.

Industry observers expect this year’s negotiations to go beyond traditional wage discussions, evolving into broader talks encompassing income distribution and employment stability.

Currently, Hyundai Motor’s production workers are compensated based on an hourly wage structure translated into monthly pay. The union is seeking to increase the fixed portion of wages through the adoption of a full monthly salary system.

 

 

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