Hyundai Motor and its labour union reached a tentative wage agreement early on Tuesday, ending a prolonged industrial dispute that had cost South Korea's largest automaker more than 55,000 vehicles in lost production. The deal was struck at the 17th round of negotiations and must be ratified by union members in a vote scheduled for 31 August before it can take effect.
Under the terms of the agreement, workers will receive a monthly base pay rise of 100,000 won (approximately US$72), a performance bonus exceeding 400 percent of monthly salary, and a one-time additional payment of 12.5 million won — equivalent to roughly US$9,000. The company also agreed to hire 500 new technical workers between next year and 2028. On the question of retirement age, both sides agreed to extend it from the current 60 to 65, contingent on revisions to relevant South Korean laws and regulations.
The agreement follows a tense summer of industrial action. The union — which represents around 400,000 members and is one of the most powerful in South Korea's automotive sector — staged a combined 60 hours of strikes since July, culminating in a full-day walkout on Friday, the first of its kind in a decade. The stoppages caused approximately 120 hours of production disruptions across two shifts, with industry estimates putting the resulting sales losses at over 2.3 trillion won (around US$1.7 billion).
A notable dimension of this year's dispute was the union's demand for job protections in the face of growing automation. Hyundai, which owns Boston Dynamics — the American robotics company best known for its Atlas humanoid robot — has announced plans to deploy humanoid robots at its manufacturing plant in Georgia, in the southeastern United States, beginning in 2028, with a view to expanding their use at other facilities. In response, the two sides agreed to jointly discuss employment implications as new technologies are introduced, and to transparently share information on new projects. "Both parties recognise that advanced technologies such as physical AI and robotics are an essential part of the future of mobility," Hyundai said in a statement.
The deal, if ratified, signals a broader reckoning within the global auto industry, where labour unions are increasingly seeking formal protections against the workforce disruption posed by artificial intelligence and automation. For Hyundai, resolving the dispute clears the way for resumed full production ahead of what analysts expect to be a competitive second half of the year.