Members of the Korean Metal Workers' Union raise their fists during a rally outside Hyundai Motor Company headquarters as the automaker's union staged its first full strike in a decade, in Seoul, on South Korea, on Aug 21, 2026. (Photo: REUTERS/Kim Soo-hyeon)

Hyundai Motor's union reaches tentative wage deal, averting more strikes

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Hyundai Motor's South Korean union said on Tuesday (Aug 25) it reached a tentative agreement with the company's management, averting further production losses after its lengthiest walkout in a decade.

Hyundai Motor shares were flat, while the broader market was down 2 per cent. The labour deal is subject to approval by union members on Monday.

The union staged its first full strike in a decade on Friday, following a series of partial stoppages since July, demanding higher bonuses, an increase in the retirement age and job protections against artificial intelligence and automation.

The tentative agreement includes a base salary increase of 4.1 per cent plus a performance bonus equivalent to 400% of base pay and additional payouts in cash and bonuses.

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The retirement age will be extended from the current 60 upon amendment of a relevant law.

From next year until 2028, 500 new technical workers will be hired.

Regarding union demands on job security related to AI, the two sides agreed to discuss matters related to employment when it comes to rolling out new businesses, according to the agreement seen by Reuters.

Hyundai, which owns humanoid robot maker Boston ⁠Dynamics, has said it plans to deploy humanoid robots at its US plant in Georgia from 2028, with the aim of expanding their use across its production sites.

"Both parties recognise that advanced technologies such as physical AI and robotics are an essential part of the future of mobility," Hyundai Motor said in a statement.

Source: Reuters/ec

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