Hyundai Motor Co. and Kia are expected to face a difficult round of annual wage and labor talks, with unions pressing demands that management is unlikely to accept, including bonuses equal to 30% of net profit, opposition to deploying the humanoid robot Atlas, a 100 million won childbirth incentive and an extension of the retirement age.
According to the auto industry on the 22nd, Hyundai Motor management and the union will meet for the first time early next month at the company’s Ulsan plant to begin full-scale negotiations for this year’s wage and labor agreement.
The Hyundai Motor union has finalized a proposal calling for a 149,600 won increase in monthly base pay (excluding step increases), a bonus equal to 30% of last year’s net profit, adoption of a fixed monthly salary system, an increase in bonuses to 800% from 750%, guarantees on working conditions as artificial intelligence is introduced, and an extension of the retirement age linked to the timing of National Pension eligibility.
Expanded use of AI is also expected to become a key issue, as rapid automation and the shift to smart factories reduce the role of existing workers. The union has objected to placing the humanoid robot Atlas on production lines and to any reduction in domestic output tied to increased production at overseas plants.
The union’s push for a “complete monthly salary system,” under which pay is fixed once certain working hours are met, is also aimed at protecting members if workloads fall as AI robots are introduced. The union says the change would raise the share of fixed pay workers receive each month.
Kia’s union is also seeking a 149,600 won base-pay increase, a bonus equal to 30% of last year’s operating profit, a 100 million won childbirth incentive and a guarantee of total employment. The childbirth incentive was reportedly added with reference to a case involving Booyoung Group.
Industry attention is focused on this year’s Hyundai Motor Group talks because they are seen as the first major venue for negotiating job security measures tied to new technologies. Critics say the union demands are unrealistic given heavy research and development spending and weaker profitability amid a tougher external environment. Hyundai Motor’s net profit last year was 10.36 trillion won; paying 30% as a bonus would amount to 42.59 million won per employee, according to the report.
With sharp differences expected on the main issues, many in the industry say a final deal will be hard to reach. Last year, the Hyundai Motor union entered a partial strike after failing to narrow differences with management, ending a seven-year streak without work stoppages. A Hyundai Motor official said the company would “avoid unnecessary attrition” and “do its best” to reach a reasonable outcome that allows labor and management to coexist."
* This article has been translated by AI.
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