POSCO Begins Partial Strike Today... First Time Since Founding

Around 120 Join Strike at Pohang and Gwangyang Plants
Management: "Difficult to Meet 1.4 Trillion Won in Demands"
Union Warns of Expanding Strike if Talks Fail

The POSCO labor union began a 48-hour partial strike on September 9 after failing to narrow differences with management during wage negotiations, marking the first strike since the company was founded in 1968.

A red traffic signal is lit at the main gate of POSCO Pohang Steelworks as the Korean Confederation of Trade Unions Metal Workers' Union POSCO Labor Union began a 48-hour partial strike starting at 7 a.m. on the 9th. Photo by Yonhap News Agency

The Korea Federation of Trade Unions Metal Workers’ Union at POSCO started a partial strike at some operations of the Pohang and Gwangyang Steelworks from 7 a.m. on the 9th until 7 a.m. on the 11th.

According to the union, about 40 employees at the Pohang Steelworks and 80 employees at the Gwangyang Steelworks participated in the strike. Management claims the actual number of participants was lower, representing roughly 1% of the total 11,000 union members.

Management has stated that it has created contingency plans for the strike and does not expect significant production disruptions. Critical production processes, such as molten iron production, are covered under collective bargaining agreements and will continue to operate normally.

The two sides remain at odds over the base salary increase rate and bonuses. The union is demanding a 7.1% increase in base salary, a 600% bonus, 50 shares in the employee stock ownership plan, and a 200% holiday bonus. Management has offered a 2.0% base salary increase, a 3.5 million won incentive for reaching targets, and a 500,000 won regional gift certificate.

Management argues that the union’s demands would cost about 1.4 trillion won, a burden that is hard to bear under the current downturn in the steel industry. The company also reported that operating profit in the first half of this year dropped 43% from the same period a year earlier, citing intensified competition from low-priced Chinese steel and increased global protectionism.

The union insists that its demands are not unconditional, but rather a proposal to find common ground through negotiations. It maintains that the company’s current proposal falls short of members’ expectations.

Both sides plan to continue negotiating during the strike period. However, the union says that if no progress is made following this first partial strike, it will expand both the scale and scope of the industrial action, considering a second 120-hour partial strike from September 16 and a possible full-scale strike in October.

A POSCO spokesperson stated, “We have prepared to avoid production disruptions during the partial strike and do not expect significant impact. We will listen to union demands, communicate openly, and strive for a resolution in the wage negotiations.”

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