Hyundai workers strike, robots among key reasons

Employees of Hyundai and Kia in South Korea left the assembly lines in their first full strike in a decade, joining workers from supplier companies who are likewise demanding better wages and job security.

Carscoops reported on Saturday (21/8) local time that around 40,000 members of the Hyundai labour union were expected to strike, with a number of them travelling to the company’s headquarters to hold a demonstration outside the building.

The one-day strike was intended to highlight their demand to raise the mandatory retirement age, which currently stands at 60 years.

The workers are also said to be demanding larger bonuses as well as better job protection from the impact of automation and artificial intelligence (AI).

This naturally raises concerns that robots could eventually replace human workers in an effort to cut costs and boost productivity.

In July, the automaker said the Atlas robot is expected to begin operating at the Hyundai Motor Group Metaplant America within two years and will initially support component sequencing tasks.

However, the company expects the robot’s capabilities to improve over time and that it may eventually be able to assemble components by 2030.

“This strike is to protect the roots of the Korean automotive industry and uphold the dignity of labour,” said Korean Metal Workers’ Union chairman Park Sang-man.

The union also noted that the joint strike involved employees from around 50 locations.

This strike is the latest in a series of labour disruptions that began in July and reportedly involved partial walkouts. The action is said to have affected production of around 55,200 vehicles worth more than US$1.67 billion (approximately Rp29.47 trillion).