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Robot adoption to see rough road ahead as experts warn of labor disputes, strikes and boycotts

Published: 08 Feb. 2026, 18:20

The Tesla humanoid robot Optimus is displayed at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 12, 2025. [REUTERS/YONHAP]

Conflict between labor and management over the deployment of AI-powered humanoid robots in workplaces appears to be inevitable in the immediate term. Hyundai Motor’s Atlas and Tesla’s Optimus have already sent shock waves through the industry. In the long term, however, experts warn that without social consensus and institutional safeguards, the integration of new technologies could lead to deeper disruptions.

Labor talks

Disagreements over the introduction of robots in workplaces are a major issue of contention.

Hyundai Motor's labor union recently stated that "not a single robot can be introduced without union agreement." Though the union later clarified that it was merely requesting discussions in line with a collective agreement, the issue is expected to spark tensions in this year’s wage and collective bargaining talks.

Hyundai Motor's collective agreement stipulates that the company must notify the union immediately upon planning the introduction of new machines or technologies, new model development, process improvements or employee reassignments due to managerial or technical reasons. The company must then form a job security committee with the union for deliberation and resolution. A labor attorney speaking on condition of anonymity noted that, under the agreement, robots likely fall under its scope and that the requirement for resolution implies the union could effectively block robot adoption.

'Yellow Envelope' law

The second potential point of conflict stems from the enforcement of the "Yellow Envelope" law. Unlike Hyundai Motor, some companies do not include specific clauses on robot use in their labor agreements, making it traditionally a managerial decision. However, with the law in place, robot adoption could now become a legitimate subject of labor disputes.

Park Ji-soon, a law professor at Korea University, explained that the "Yellow Envelope" law expands the scope of labor disputes to include managerial decisions that affect working conditions. "It allows unions to stage strikes against the introduction of robots if they believe it impacts working conditions," he said.

The Ministry of Employment and Labor's revised guidelines also affirm that unions can demand negotiations over employment security when decisions such as mergers, spinoffs, sales or transfers may reasonably lead to layoffs or job reassignments. The guidelines indicate that job reassignments, not just layoffs, fall within the scope of collective bargaining.

"If companies restructure operations after adopting robots, leading to unavoidable reassignments for new roles, unions could demand negotiations over job security," Park said.

"Strikes aimed at including such employment guarantees in labor contracts are now also possible."

Legal loopholes

Legal experts warn of broader, unforeseen consequences.

Under current labor law, hiring substitute workers or outsourcing work during legal strikes is strictly prohibited. However, deploying robots in place of striking workers may not face the same legal restrictions.

Attorney Lee Kwang-sun from Law Firm Lee Kwang-sun noted that, "Using robots instead of striking workers or increasing their operational hours, which are not subject to labor time restrictions, may not qualify as illegal strikebreaking under current law."

This could weaken the effectiveness of strikes, he added.

Park said, "The introduction of robots will undoubtedly present new challenges for both employers and unions. Both sides need to reassess their approach to AI and robotics from the ground up."

Despite the urgency, meaningful social dialogue remains stalled.

A new social dialogue institution set to be launched by the Economic, Social and Labor Council (ESLC) in order to address new labor conflicts stemming from AI deployment is already facing a boycott from the Korean Confederation of Trade Unions (KCTU).

KCTU Chairman Yang Kyung-soo stated in a New Year’s briefing on Monday that "critical issues like AI adoption should not be discussed in the ESLC while the KCTU is excluded."

Efforts to address labor challenges posed by AI and robotics appear to be at an impasse before even beginning.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM YEON-JOO [[email protected]]