Monday, July 13, 2026

"Robots Are Taking Our Overtime Pay"... Hyundai Motor Labor and Management Discuss Shift From Hourly to Monthly Wages

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2026-07-13 07:46:33
Updated
2026-07-13 07:46:33
At a Hyundai Motor Group press conference held on the 5th local time at Mandalay Bay Resort and Casino in Las Vegas, State of Nevada, one day before the opening of Consumer Electronics Show 2026 (CES 2026), a next-generation electric Atlas prototype, left, and an Atlas development model were unveiled on stage. 2026.1.6 / Yonhap News Agency

[Financial News] Hyundai Motor Company and its labor union are discussing a change to the wage system from the long-standing hourly pay structure, in place for nearly 60 years, to a monthly salary system. The move is aimed at responding to changes in future production environments, including robots and Physical AI.
Discussion on a 'full monthly salary system' that pays wages regardless of working hours

According to industry sources on the 12th, Hyundai Motor and its union agreed during wage and collective bargaining agreements negotiations held on the 8th to pursue a research project for introducing a full monthly salary system.
Based on the results of the study, the two sides plan to form a joint task force to discuss the timing and method of implementation in detail.
The task force is expected to review opinions from an external advisory panel and wage systems used by overseas automakers to design a pay structure suited to Hyundai Motor's production sites.
The full monthly salary system under review by Hyundai Motor and its union would pay workers a fixed amount each month, regardless of changes in working hours.
It is seen as a system that could improve wage stability for workers, as the share of fixed pay would increase compared with the current hourly wage structure, which adds overtime, night-shift and special-duty allowances.
Talks appear to have accelerated ahead of Physical AI adoption

The industry believes Hyundai Motor Group's push to automate production sites, along with the introduction of Physical AI and humanoid robots, has influenced the latest discussions.
Earlier, Boston Dynamics, the robotics affiliate of Hyundai Motor Group, announced plans to mass-produce 30,000 humanoid robots starting in 2028.
Hyundai Motor Group also plans to deploy its humanoid robot Atlas in parts-handling processes at Hyundai Motor Group Metaplant America (HMGMA) in Georgia in 2028.
However, no decision has yet been made on introducing humanoid robots at domestic plants.
The discussion over a full monthly salary system is also expected to take considerable time before any actual rollout, as it must go through the research project and consultations within the joint labor-management task force.
gaa1003@fnnews.com Ahn Ga-eul Reporter