Hyundai and Kia Unions Battle Physical AI Distribution While Seeking Total Control Over Automation and Manufacturing Processes During 2026 Bargaining
The modern car industry shows its ability to handle challenges brought by advanced humanoid machines. Organized workers at Hyundai Motor and Kia have started their first defensive steps against labor unions because of the start of the 2026 collective bargaining season. The union representatives of both automotive companies now fight for higher pay while they seek to control Physical AI distribution according to data that became public on June 3. South Korean manufacturing plants face deep seated anxiety that humanoid robotics will destroy their current labor framework according to this strategic shift.
The Kia union has made its latest demand which represents a bigger demand than before for shop floor authority. The labor leadership at the company wants to shift the current technology notification rule into mutual consultation requirements through their 2026 collective agreement proposed amendments. The union's linguistic shift from passive observer role to active control enables it to block or allow new machinery introduction. The company wants to use automation on its workforce The workforce should not lose its job security because of robotics efficiency.
The union demands the business to make core electric vehicle components in house instead of using external suppliers. The company must create battery and motor and fuel cell stack production facilities within the United States. Through this strategy the union wants to stop international companies from taking their work to automated production sites situated in foreign countries. The business strategy will help workers keep their jobs across the country by preventing the industry from adopting internal combustion engines as standard.
At Hyundai Motor Company employees want to change their payment system to fixed monthly salary payments because they oppose automation. The production team at present works according to hourly payment arrangements. The union wants to move to monthly salary payments because they want to protect workers from losing pay if robots like Atlas begin taking over assembly work. The organization uses a financial shift to establish a base salary that automation systems should not be able to reduce. Lee Jong Chul head of the main Hyundai metal workers union branch described the movement's strength through his recent public statement.
The financial requirements that come with these new structural changes match the operational expenses required for these operational changes. The Hyundai and Kia unions demand performance bonuses that equal 30 percent of last year's net earnings. The workers want performance bonuses of 3.1 trillion won while the Kia workers demand bonuses of 2.7 trillion won. The amounts exceed the operating profits recorded by both companies in the first quarter of the current year. The unions insist on base salary increases of 149600 won and the mandatory retirement age extension to 65 years old. The South Korean automotive sector will enter its most difficult negotiation period because massive corporate profits face existence threatening AI.
Source: sedaily
