Will Atlas take factory jobs? Hyundai workers walk out over wages and automation

South Korean automaker Hyundai Motor's labour union, affiliated with the Korean Metal Workers' Union (KMWU), has launched a three-day strike this week after failing to reach a wage agreement with the company following a series of lengthy negotiations. The industrial action has raised concerns about potential disruptions to Hyundai's production operations.

According to reports, workers on both daytime and evening shifts walked off the job for two hours per shift between Monday and Wednesday.

Hyundai had offered workers a KRW 89,000 (around US$67) increase in monthly salary, along with an annual performance bonus of up to 350% of their monthly salary, an additional KRW 10 million bonus, and 15 company shares for each employee.

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However, the union rejected the proposal, demanding a KRW 149,600 (around US$100) monthly wage increase, a bonus equivalent to 800% of monthly salary, stronger job security guarantees related to the company's humanoid robot deployment plans, and an increase in the retirement age from 60 to 65.

Humanoid robot deployment sparks concerns

A major point of contention is Hyundai's plan to deploy Boston Dynamics' Atlas humanoid robots across its manufacturing facilities.

The union has demanded a formal commitment from Hyundai to negotiate with workers before rolling out the Atlas humanoid robots at its factories. It is also seeking guarantees that employees' incomes and jobs will be protected if humanoid robots begin working alongside human workers on production lines.

Hyundai has previously announced plans to deploy the Atlas humanoid robot at its Georgia Metaplant starting in 2028. The company has also outlined a long-term goal of deploying more than 25,000 humanoid robots across Hyundai and Kia manufacturing facilities.

Strong support for strike action

The strike has received overwhelming backing from Hyundai's workforce, with more than 86% of the company's roughly 40,000 union members voting in favour of the walkout.

The union insists it must have a seat at the negotiating table before any decisions are made on humanoid robot deployment and is seeking assurances that workers' pay and employment will not be affected as automation expands.

It remains unclear how much of Hyundai's production the company ultimately intends to automate using the Atlas humanoid. However, with labour tensions already running high, the ongoing dispute could delay the company's humanoid robot deployment plans.