Hyundai Motor's South Korean union approves strike action over stalled wage talks

Production at South Korea's top automaker could grind to a halt as workers seek higher pay, bonuses and AI-related job protections

Logo of Hyundai Motors, Reuters

Hyundai Motor's South Korean labour union said its members voted on Wednesday to approve strike action over stalled wage negotiations, raising the prospect of production disruptions at the country's top automaker.

Union representatives had pledged to discuss strike plans if an agreement was not reached during government-mediated talks on Wednesday, a union spokesperson said.

The union is demanding a 149,600 won ($96.82) increase in base monthly pay and a performance bonus equal to 30 percent of last year's net profit, seeking guarantees on employment and working conditions related to the use of AI, among other issues.

The move comes as workers press for larger payouts after Samsung Electronics has agreed to distribute 10.5 percent of operating profit to its South Korean chip employees as performance pay.