SEOUL, Aug 21 — The union representing workers at South Korean automaker Hyundai Motor staged its first full-day strike in 10 years today, after long-running wage and retirement age talks with management broke down.
The action at South Korea’s largest automaker comes amid concerns over job security as artificial intelligence transforms the country’s auto industry.
Around 40,000 employees, including office workers, are estimated to be taking part in the action, according to the union.
The action comes after workers held a three-day partial walkout last month.
Officials at the union said its demands — for a 50 per cent increase in bonuses and two-year extension to the retirement age — have been reasonable given what it sees as the firm’s stable financial position.
“The company’s retained earnings stood at 101 trillion won (RM295 billion) last year, so a 50-per cent increase in bonuses is not an excessive demand,” it said in a statement sent to AFP today.
Frenzied global demand for advanced memory chips used in AI data centres has buoyed South Korea’s economy, dominated by semiconductor giants Samsung and SK hynix.
The boom has also fuelled labour demands, with workers from biotech and autos to shipbuilding seeking a larger share of corporate profits through bonuses.
“The additional cost of extending the retirement age by two years would be about 180 billion won annually,” the union’s statement said.
“There is no reason Hyundai Motor, which generates 13 trillion won in annual net profit, cannot bear this.”
The automaker told AFP that it could not “accept the union’s demands” without a solid legal or rational basis.
Today, workers on the 6.45am morning shift did not report for work, while those on the 3.30pm afternoon shift were also told to stay home, the union said.
The full-day strike is expected to halt production at Hyundai Motor plants nationwide, including Ulsan, Jeonju and Asan.
Hyundai posted record second-quarter revenue of 49.2 trillion won, although operating profit fell 20.8 per cent on-year amid weaker sales. — AFP
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