POSCO Union Announces 48-Hour Partial Strike Starting September 9... Management Says "1.4 Trillion Won Needed to Meet Demands"

About 80% of Last Year’s Operating Profit

Management: "Difficult to Bear Amid Business Struggles"

Union: "Seeking Common Ground, Not Insisting on All Demands"

The POSCO labor union has announced a 48-hour partial strike starting on September 9. The management estimates that it would require about 1.4 trillion won to meet all of the union's demands, arguing that this amount is unmanageable amid current business difficulties. The union, on the other hand, refuted this, stating they are not insisting on all demands being met, but are instead seeking common ground through negotiations.

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

According to the industry on September 8, the POSCO labor union, affiliated with the Korea Metal Workers' Union under the Federation of Korean Trade Unions, held a strike resolution rally at the POSCO Center in Gangnam-gu, Seoul on this day. The union plans to launch a 48-hour partial strike starting September 9 if wage negotiations are not concluded by midnight. If the strike actually goes ahead, it will be POSCO's first strike since its foundation in 1968. The specific departments and number of participants for the strike have not yet been determined.

The labor and management are showing significant differences on issues such as the basic wage increase rate and incentives. The union is demanding a 7.1% increase in basic pay, incentives equivalent to 600% of base salary, 50 shares through the employee stock ownership program, and holiday bonuses of 200%. The company has offered a 2.0% increase in basic pay, achievement incentives of 3.5 million won, local gift certificates worth 500,000 won, and an expansion of the eligibility for seniority celebration bonuses.

The management claims that the total cost of the union's demands, including the basic pay, incentives, and employee stock ownership, amounts to about 1.4 trillion won. This is double last year's wage negotiation demands and similar to POSCO's annual operating profit for 2024. Compared to last year's operating profit of 1.8 trillion won, the figure is about 80% of that amount.

POSCO argues it is difficult to bear such costs at a time when the steel industry is deteriorating due to an influx of cheap Chinese imports and the strengthening of global protectionism. Operating profit for the first half of this year also fell by 43% compared to the same period last year.

Despite challenging business conditions, the company explained that it has proposed an industry-leading package exceeding the terms settled by competitors. While the proposal has been continuously revised during negotiations, management argues that the gap with the union has not narrowed because the union is sticking to its initial demands.

The union, in contrast, emphasized they are not insisting on all demands being accepted. While management has improved its offer, the union believes it is still not at a level acceptable to union members and stresses that both sides need to find middle ground through negotiations.

A POSCO labor union official stated, "We are not saying that all of our demands must be met, but rather that labor and management must find common ground through negotiations." He added, "The current proposal from management falls far short of union members’ expectations, and therefore, there has been no progress in the talks. We have informed management that we will wait until midnight on the 8th and will be watching to see if any additional proposals are made."

POSCO has also put together an operational plan to minimize disruption to production in preparation for the partial strike. Even if the strike goes ahead, the key production lines—classified as essential under the collective agreement—will operate normally.

A POSCO official said, "It is realistically difficult to accept all union demands amounting to about 1.4 trillion won, especially given the current challenges facing the steel industry," adding, "We will continue to listen to the union and communicate transparently and do our utmost to reach a successful wage negotiation settlement."

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