Hyundai Union Demands $2 Billion Bonus, Wage Hikes Amid AI Automation Concerns

Gate News message, April 20 — Hyundai Motor’s labor union is seeking bonuses equal to 30% of the company’s 2025 net profit, totaling more than 3 trillion won (approximately $2 billion), according to union proposals. The demands also include a monthly base pay increase of 149,600 won ($100), a raise in bonus ratios from 750% to 800% of base salary, job security protections tied to AI deployment, a higher retirement age of 65, and increased hiring.

The union has also proposed equal sharing of profit-based bonuses with employees at partner firms, marking the first known case of a main contractor’s union incorporating supplier performance bonuses into collective bargaining under South Korea’s new “Yellow Envelope Act.” The bonus demand exceeds those of other major South Korean conglomerates: Samsung Electronics’ union sought bonuses tied to 15% of operating profit, while SK Hynix negotiated a deal to set aside 10% of operating profit for bonuses.

The push for job protections reflects concerns over Hyundai’s planned deployment of AI robots, including its “Atlas” humanoid robot, on vehicle assembly lines by 2030 as part of its shift toward an unmanned factory. Labor advocates view the union’s demands as a potential model for manufacturing workers globally, signaling a broader shift in collective bargaining toward income guarantees and profit-sharing arrangements amid accelerating automation.