Humanoid Robots Deployment Will Bring ‘Employment Shocks’, Hyundai Motor’s South Korean Labour Union Warns Automaker

Hyundai Motor’s South Korean labour union has warned against deploying humanoid robots without a formal labour agreement, citing job security concerns. The dispute follows Hyundai’s CES 2026 plan to mass-produce Boston Dynamics’ Atlas robot. While investors back automation and rising shares, workers fear displacement in final assembly and other traditionally human-led manufacturing roles.

Hyundai Atlas Robot (Photo Credits: Hyundai)

Seoul, January 22: Hyundai Motor's labour union in South Korea has issued a stern warning to the automaker regarding its plans to introduce humanoid robots on the production floor. The union stated on Thursday that it will not permit the deployment of new robotic technology without a formal labour-management agreement, citing significant concerns over potential "employment shocks" for the workforce.

The friction arises following Hyundai’s recent announcement at CES 2026 to mass-produce and deploy the "Atlas" humanoid robot, developed by its subsidiary Boston Dynamics. While the roadmap for 2028 has propelled Hyundai’s shares to record highs and pushed its market capitalisation above 100 trillion won, the union remains firm that technological advancement must not come at the cost of job security. CES 2026: Boston Dynamics’ Spot Robots Open Hyundai Event With K-Pop Dance Routine Before Unveiling of New Atlas Humanoid (Watch Video).

Hyundai Atlas Humanoid Robot Unveiled at CES 2026

Union Demands Collective Bargaining

In an internal letter reviewed by Reuters, the Hyundai Motor branch of the Korean Metal Workers' Union emphasised that the introduction of automated technology is currently being handled as a "one-sided action." The union argued that under existing frameworks, no robot should enter the workplace without prior approval from representatives of the staff.

The labour group’s primary concern is the displacement of human workers in roles that were previously considered the "last stronghold" of manual labour, such as final assembly and complex parts sequencing. The union expressed that while the company is being re-evaluated as a "physical AI" entity by investors, its core business remains the production and sale of automobiles by human hands.

Hyundai Motor Humanoid Robot Plan

Hyundai’s strategy, unveiled earlier this month, involves an investment of USD 26 billion in the United States to build a robotics hub capable of producing 30,000 Atlas units annually. The automaker intends to use these robots to handle "repetitive, heavy, and hazardous" tasks, which it claims will allow human employees to transition into safer, higher-value roles within the factory.

The market response to this vision has been overwhelmingly positive, with analysts from Nomura suggesting that the move could structurally lower operating costs. Hyundai’s stock recently surged over 70% this year, making it the third-largest company on the Kospi by market value, as investors bet on the commercial success of its partnership with Google DeepMind and NVIDIA.

Industrial Automation Job Security Concerns

Despite management’s assurances that robots will complement rather than replace humans, the union remains sceptical. A union official noted a rising number of enquiries from younger workers worried about the longevity of their careers. The "Atlas" robot features 56 degrees of freedom and tactile sensing, making it capable of performing tasks like maneuvering engines—work long thought to require human dexterity. Russia’s 1st Humanoid Robot: AIDOL Company Showcases Its AI-Powered Human Robot That Stumbles Down While Walking on Stage (Watch Video).

As Hyundai prepares to open its Robot Metaplant Application Centre in the United States later this year, the domestic dispute in South Korea highlights a growing global challenge. The company now faces the difficult task of balancing its ambitious "Physical AI" roadmap with the demands of a powerful labour union that has a history of industrial action over changes to production methods.

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(The above story first appeared on LatestLY on Jan 22, 2026 01:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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