Thousands of unionized Hyundai auto workers began partial strikes at the company's Ulsan production complex in South Korea after negotiations broke down over plans to deploy humanoid robots. Workers ended day and night shifts two hours early from July 13 through July 15 and plan four-hour strikes from July 20 to 22 following 15 rounds of failed negotiations, The Korea Times reported. The Wall Street Journal described the action as the car industry's first factory stoppage addressing humanoid robots. The strikes center on Hyundai Motor Group's plans to deploy the Atlas humanoid robot made by Boston Dynamics across manufacturing facilities. The Hyundai Motor union represents more than 39,000 South Korean workers at the world's largest automotive plant.
Hyundai Workers Stage Partial Strikes from July 13 to July 22
Workers at Hyundai's automotive production complex in Ulsan walked off the job two hours early during day and night shifts from July 13 through July 15. The union plans to extend the action with four-hour strikes scheduled from July 20 to 22. The Korea Times reported that 15 rounds of negotiations failed to produce an agreement between the union and Hyundai Motor Group.
Hyundai Plans to Deploy 25,000 Atlas Robots Starting in 2028
Hyundai Motor Group unveiled the latest version of the Atlas humanoid robot at the start of this year. The robot stands at more than 6 feet tall and can lift more than 100 pounds. Boston Dynamics manufactures Atlas and is becoming a wholly owned subsidiary of Hyundai, according to Reuters. The Korea Herald reported that Hyundai aims to deploy more than 25,000 Atlas robots across Hyundai and Kia manufacturing plants. The company plans to start deployment at its US factories in 2028 but has not disclosed a timeline for other locations.
Atlas Robot Costs $130,000 with Two-Year Payback Period
Each Atlas robot costs an estimated $130,000, according to Samsung Securities Co. analyst Esther Yim in a Bloomberg interview. Yim stated the robot may pay for itself within about two years of operations. James Hong at Macquarie Securities Korea Ltd. suggested that if the robot cost falls to $100,000, its operational cost could drop below the US federal minimum wage of $7.25 and significantly undercut a typical auto worker's salary.
Union Demands Fixed Salary Conversion and Retirement Age Increase to 65
The Hyundai Motor union demanded that the automaker shift production workers' hourly pay to a fixed salary to protect against any automation-driven reduction in work hours, The Wall Street Journal reported. The union also sought to raise the worker retirement age from 60 to 65 and demanded bigger worker bonuses.
FAQ
What did Hyundai workers do from July 13 to July 15?
Hyundai workers at the Ulsan production complex ended their day and night shifts two hours early from July 13 through July 15 as part of a partial strike over humanoid robot deployment plans.
Why did negotiations between Hyundai and the union break down?
Negotiations broke down after 15 rounds of talks failed to reach an agreement on union demands related to Hyundai's plans to deploy Atlas humanoid robots across manufacturing facilities.
How much does each Atlas humanoid robot cost?
Each Atlas robot costs an estimated $130,000, according to Samsung Securities Co. analyst Esther Yim, and may pay for itself within about two years of operations.
