How much is Hyundai expected to lose financially from the strike?

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Hyundai Faces Significant Financial Impact from Labour Action

Hyundai is expected to incur losses of approximately 200 billion won (around RM542 million) due to the ongoing partial walkout by its labour union. This financial setback is a direct consequence of the breakdown in wage negotiations, which has led to production disruptions at South Korea's largest automaker. The union's demands, which include higher bonuses, pay raises, and an extension of the retirement age, remain unmet by management's current proposals.
Production Halts Underway

The labour action, which commenced today, involves workers downing tools for four hours daily until Wednesday. Both day and night shifts will each halt production lines for two hours during this period. Beyond the main assembly lines, workers in sales and maintenance, as well as those at the Namyang research and development centre, are also participating in the industrial action to varying degrees.
Unresolved Wage Negotiations

The industrial action stems from a failure to reach an agreement in protracted wage negotiations that began in May, with the fifth round of talks collapsing on July 8. The union is demanding a 149,600 won increase in base salary, a performance bonus equivalent to 30 per cent of last year’s net profit, an 800 per cent bonus, an extension of the retirement age, and the reinstatement of dismissed workers. Management's offer included an 89,000 won monthly base salary increase, a performance bonus of 350 per cent of monthly base pay plus 10 million won, and 15 company shares.
Concerns Over Industry Transformation

This strike occurs against a backdrop of growing concerns within the industry regarding job security, particularly with the rapid advancements in artificial intelligence and robotics. Hyundai has plans to deploy humanoid robots at its US plants from 2028, and while no immediate plans for Korean plants have been disclosed, analysts anticipate their eventual adoption. This technological shift is a significant factor contributing to the union's anxieties.

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How much is Hyundai expected to lose financially from the strike?

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