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Hyundai Union Strikes: AI Fears Halt Production
24 Aug
Summary
- Union and management reached a tentative agreement on a salary increase.
- New technical workers will be hired from next year until 2028.
- The Ulsan plant, crucial for production, faced potential shutdown.
Hyundai Motor's union in South Korea has tentatively agreed to a wage increase with management, resolving a dispute that led to the union's first full strike in a decade. The agreement includes a 100,000 won monthly base salary hike, alongside performance bonuses and welfare points.
Production at Hyundai's major Ulsan automobile factory, which has an annual capacity of 1.5 million vehicles, was at risk of suspension. The union had sought higher retirement ages and job protections against AI and automation, expressing concerns about potential job displacement.
As part of the tentative deal, Hyundai plans to hire 500 new technical workers annually from 2027 through 2028. This hiring initiative aims to address union worries about increasing robot deployment and potential headcount reductions on the assembly lines.
