What is the projected financial impact of the strike on Hyundai?

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The strike is projected to cost Hyundai 200 billion won.

The labour union at Hyundai Motor has initiated a three-day partial walkout, which is expected to result in a financial impact of 200 billion won for the company. This estimate was reported by the Maeil Business Newspaper. The industrial action commenced on July 13 and is scheduled to continue until Wednesday.
Daily Production Halts

The union's plan involves halting production lines for four hours each day during the three-day strike. Both day and night shifts will stop for two hours daily. This measure aims to pressure management to agree to the union's demands concerning wages and benefits.
Union's Demands vs. Management's Offer

Negotiations have been ongoing since 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. In contrast, management proposed an increase of 89,000 won in base salary per month, a performance bonus of 350 per cent of monthly base pay plus 10 million won, and 15 company shares.
Broader Industry Context

This strike occurs against a backdrop of increasing concerns within the automotive industry regarding job security due to advancements in artificial intelligence and robotics. Hyundai, for instance, plans to deploy humanoid robots at its US plants starting in 2028, prompting speculation about future adoption at its Korean facilities. The union is expected to decide on further industrial action after the current walkout concludes on Wednesday.

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What is the projected financial impact of the strike on Hyundai?

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