Hyundai Motor's union staged a full-day strike on Friday after failing to reach an agreement with management over wage negotiations, escalating tensions at the automaker amid sluggish vehicle sales. The industrial action has fueled market concerns about further disruptions to production, marking the first eight-hour walkout by the union in a decade.

Production lines at Hyundai's Ulsan, Jeonju, and Asan plants are set to halt for a combined 16 hours across two shifts, with approximately 39,000 union members participating in the strike. Since wage talks with management began in May, cumulative strike hours have now reached 60, including Friday's action.

According to industry sources, the ongoing labor dispute has resulted in a cumulative production loss of roughly 55,200 vehicles, with sales losses exceeding 2.3 trillion won (approximately $1.64 billion). The union plans to hold additional four-hour strikes on Monday and Tuesday, which is expected to intensify production disruptions further.

The labor action comes after management and the union failed to narrow their differences on several contentious issues, including wage increases, a proposed 50% hike in performance bonuses, reinstatement of union members dismissed for illegal activities, and an extension of the retirement age.

In a related development, the union at Hyundai's sister company Kia Motors voted on Friday to stage partial strikes from Wednesday to Friday after failing to close the gap with management on wage issues. The union is demanding a monthly base salary increase of 149,600 won, along with performance bonuses equivalent to 30% of the company's operating profit from last year. Should the union proceed with the planned walkout, it would mark Kia's first strike in six years.