The Hyundai Motor union declared a "no deployment without agreement" stance on the Humanoid Robot "Atlas." The union said that because robots will inevitably cause a shock to employment if introduced, this is not something management can decide unilaterally. There have already been cases where the union halted factory automation based on the collective agreement, and starting in Mar., the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, also recognizes issues that affect working conditions as subjects of labor disputes, making it fully possible for the union to flex its muscle. However, there are concerns that if the union's opposition to robots drags on, it could lead to weakened competitiveness and hollowing-out of production in Korea's auto industry.
On the 22nd, the Hyundai Motor branch of the Korean Metal Workers' Union said in a newsletter, "At Hyundai Motor, the introduction of AI robots to cut labor costs is becoming a reality," adding, "This is a clear warning. Remember that without labor-management agreement, not a single robot can enter the shop floor." The plan is to establish a mass-production system for 30,000 units of Atlas by 2028, build a robot production base in the United States, and then deploy the robots to manufacturing sites in stages. Whether to place them at domestic plants has not yet been decided, but the union has moved early into a defensive posture.
◇ If working conditions are affected, labor-management agreement is required based on the collective agreement
In the finished car industry and labor circles, Hyundai Motor's union warning is not seen as mere bluster. Whether to deploy robots in production processes is a managerial decision by corporations, but if it affects working conditions, the union gains the authority to intervene.
Article 41, Paragraph 1 of the Hyundai Motor collective agreement states, "The company shall, upon establishing plans, notify the union and form an employment stability committee to deliberate and decide on matters such as the introduction of new machines and technologies, development and launch of new models, improvements to work processes, and reassignment, retraining, and related issues arising from managerial or technical circumstances." Plants overseas, including in the United States, are not covered.
There have already been many cases in which the Hyundai Motor Group union demanded agreement from management on grounds of job security and brought domestic plants to a halt. In 2011, when Hyundai Motor launched the new "i30," automated the production line, and sought to move 74 surplus workers to other plants, the union stopped production for more than a month.
Kia's electric vehicle plant in Hwaseong, Gyeonggi, which was completed in Nov. last year, spent about a year just to reach an agreement with the union. EV plants have fewer parts and many automated processes, so the required workforce inevitably declines. To offset this, the union demanded that annual production be raised from 100,000 to 200,000 units and that existing headcount be guaranteed. Most of those demands were met.
Lee Hang-gu, a research fellow at the Korea Automotive Technology Institute, said, "Back in 2019, digitalizing the Ulsan plant was also delayed about a year due to union opposition," adding, "It will take time before robots are actually introduced at domestic plants, but union resistance is a natural step, and they will take time to negotiate with management."
Even if the union does not oppose the introduction of robots, it has no choice but to demand compensation for changes to working conditions, and if labor and management fail to see eye to eye, the result will be delays in the introduction of robots.
◇ Thanks to the yellow envelope law, disputes may proceed immediately without negotiations
There is also a legal basis for Hyundai Motor's union to apply the brakes directly, skipping the negotiation stage. The tool is the amended Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, known as the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, which takes effect in Mar.
Under the amendment, "managerial decisions of the business that affect working conditions" are included among the subjects of labor disputes. The criterion is whether it causes substantial and specific changes to working conditions, and because the introduction of robots into a plant is highly likely to reassign existing workers, labor circles believe the union would have a high probability of securing the right to dispute.
Park Ji-soon, a professor at the Korea University School of Law, said, "The yellow envelope law will serve as a basis that Hyundai Motor's union can use almost 100% to block the introduction of robots." Park said, "Introducing robots is a kind of change in the production method, which inevitably can lead to changes in working conditions such as reassignment and layoffs," adding, "Until now, this was resolved through labor-management consultation, but the yellow envelope law has elevated it to a subject of bargaining."
In fact, according to the "interpretive guidelines for the amended Trade Union and Labor Relations Adjustment Act" released late last year by the Ministry of Employment and Labor (MOEL), it is specified that "even if it is a managerial decision of the business, layoffs and reassignment due to restructuring that cause substantial and specific changes to workers' status or working conditions in the course of implementing the managerial decision are subjects of collective bargaining."
Kwon Hyuk, a professor at the Korea University Graduate School of Labor Studies, also said, "There will be interpretive controversy over whether decisions such as the introduction of robots are subjects of bargaining under the yellow envelope law, but conflict will be unavoidable," adding, "The Hyundai Motor union's remark that 'not a single unit can come in without agreement' is not an empty threat."
◇ Price competitiveness is bound to weaken… possibility of production hollowing-out in Korea
Although Hyundai Motor is not saying it will immediately introduce robots into domestic plants, critics say that if the company avoids or delays introduction out of concern over union opposition, it will ultimately only weaken the domestic auto industry and export competitiveness.
Price competitiveness could immediately slip. Lee said, "China has already slashed costs with robots and is competing on price," adding, "Hyundai Motor may be defending the Korean market now, but if cheap Chinese EVs come in, even if it remains the No. 1 player, its market share could fall." Lee also predicted that global competition would become harder.
Domestic workloads could eventually follow a path of decline. Park said, "Not only China but also the United States is in full swing on automation," adding, "Instead of outdated plants, volumes will all shift to automated factories overseas, making production in Korea inevitably hollow out."