Hyundai Motor’s unionised workforce in South Korea launched a three-day partial strike on Monday, halting production lines for four hours each day after wage negotiations with management broke down. The action, which is expected to cost the company an estimated 200 billion won ($132 million) in lost output, marks the most significant industrial dispute at the automaker since it began pursuing an earnings turnaround through new model launches in the second half of the year.

The walkout follows the collapse of a fifth round of talks on 8 July. Union officials are demanding a base salary increase of 149,600 won per month, a performance bonus equivalent to 30 percent of last year’s consolidated net profit, and an extension of the retirement age. Management had proposed a smaller base pay rise of 89,000 won, a bonus of 350 percent of monthly base pay plus 10 million won, and a grant of 15 company shares. Viewed from Seoul, the union’s stance has been hardened by recent bonus payouts at South Korean technology giants Samsung Electronics and SK Hynix, where semiconductor workers received substantial windfalls after a surge in profits. The union argues that Hyundai’s own 30 percent jump in net profit last year justifies a similar link between compensation and corporate performance.

Beyond immediate wage demands, the dispute is animated by deepening anxiety over job security as artificial intelligence and robotics reshape automotive manufacturing. Hyundai plans to deploy humanoid Atlas robots at its US plants from 2028, and while the company has not disclosed a timeline for Korean factories, analysts in Seoul assess that domestic adoption is only a matter of time. Union representatives have explicitly sought guarantees that jobs will not be lost to automation, a demand management has so far resisted. Executive Vice President Choi Yeong-il expressed “deep regret” over the strike, warning that production disruption should not occur when the company is attempting to regain momentum with new models.

The partial stoppage, which sees day and night shifts each suspend work for two hours, is accompanied by an overnight sit-in protest by union leaders. Workers in sales, maintenance, and the Namyang research and development centre are joining the action according to their circumstances. The union is scheduled to decide on further industrial action on Wednesday, immediately after the current walkout concludes, leaving open the possibility of an escalation if negotiations remain deadlocked.