Will POSCO's 58-Year Strike-Free Record Be Broken?... Union "Prepares for Strike"

'Suspension of Mediation' in Third Central Labor Relations Commission Session

Union: "Strike Pre-Announced"... Possibility of Further Negotiations Remains

Management: "Doing Our Best to Minimize Impact on Industry"

POSCO labor and management failed to reach an agreement in this year’s wage negotiations, leading the labor union to secure the legal right to strike. The union has effectively pre-announced a strike and decided to escalate its collective action. However, they have left open the possibility of reaching an agreement through additional negotiations if the company presents a more forward-looking proposal.

POSCO headquarters building in Yeoksam-dong, Gangnam-gu, Seoul. Photo by Younghan Heo

On August 18, it was confirmed that the third mediation meeting regarding POSCO's wage negotiations with the Central Labor Relations Commission resulted in a decision to "suspend mediation." As a result, the union is now legally permitted to launch a strike or other collective actions.

The union told The Asia Business Daily in a telephone interview that, "Previously, we considered a strike as a last resort, but now we believe the situation requires us to use this option," adding, "You can consider this as the stage where we are effectively announcing a strike."

However, there is still a chance of reaching a settlement through further negotiations before an actual strike begins. The union said, "If, in the meantime, management puts forward a more reasonable offer, we may not go on strike," while also explaining, "Compared to before, the union’s stance has shifted much more toward striking."

POSCO labor and management conducted intensive negotiations during the mediation extension period under the recommendation of the Central Labor Relations Commission, but ultimately failed to narrow their differences.

During this process, the company offered a revised proposal including a 1.5% increase in base salary and a bonus of 2.5 million won. The base salary raise did not include any additional performance conditions. The company also suggested providing an extra 300,000 won in welfare points on top of the annual 2 million won holiday bonus.

In addition, suggestions included increased incentives for on-site job immersion, a boost in long-service celebration bonuses, improved standards for housing loans, and enhancements to employee welfare infrastructure through a joint labor-management task force. The proposal also covered support for employee participation in joint cultural events within this year’s event budget and ratification of the labor-management agreement from the medical support improvement task force in the current wage negotiations.

The company stated, "Based on the Central Labor Relations Commission's recommendation, we held intensive talks with the union during the mediation extension period, repeatedly discussing and presenting more advanced proposals that could protect both the company’s future competitiveness and staff morale." The statement added, "We regret that securing the right to strike was chosen over seeking further points of agreement."

The company further announced, "Recognizing the challenging business environment, we plan to maintain ongoing communication with both the union and all employees. Even if collective action occurs, we will do our best to establish emergency response measures to ensure that there is no impact on critical industries at home and abroad, such as automobiles, shipbuilding, construction, and home appliances."

Securing the legal right to strike does not immediately mean that an actual strike will occur. In the 2024 wage and collective agreement negotiations, the POSCO union also secured the right to strike but ultimately reached a settlement through negotiations without a strike.

The union has also left room for further talks. When asked if there is a chance to avoid a strike through additional negotiations, as in 2024, the union responded, "Of course." Accordingly, whether the strike is actually carried out will depend on additional negotiations between labor and management and the proposals made by the company.

This content was produced with the assistance of AI translation services.