South Korean automaker Hyundai Motor’s labour union, which is affiliated with the Korean Metal Workers’ Union (KMWU), has launched a three-day partial strike this week after it failed to reach a wage agreement with the automaker following a series of lengthy negotiations. The industrial action has raised concerns over the possibility of ongoing disruption to the automaker’s production operations.

Workers on daytime and evening shifts downed tools for two hours per shift between Monday and Wednesday (13-15 July), the first strike action carried out this year, describing the automaker’s wage offer as inadequate.

Hyundai is reported to have offered its workers a KRW 89,000 (US$ 67) increase in their basic monthly salary, an annual performance bonus equivalent to up to 350% of their monthly salary, an additional bonus payment of KRW 10 million, and 15 shares in the company for each worker.

The labour union rejected the offer, demanding a basic monthly salary increase of KRW 149,600 (US$ 100), bonus payments equivalent to 800% of salary, and job security guarantees in relation to the company’s plans to deploy humanoid robots in its plants. It also demanded that the retirement age be raised from 60 to 65.

Local reports suggest the strike action could cost the company KRW 200 billion in lost production, or some 5,000 vehicles.

Workers at US automaker General Motors’ local manufacturing subsidiary, GM Korea, also affiliated with the KMWU, launched a two-day partial strike this week after failing to agree salary increases with the automaker, resulting in eight hours of lost production.