POSCO Wage Talks Collapse; Union to Launch Indefinite Strike on Nov. 2

Union seeks 7.1% base-pay increase, management offers 2.5%... Management: "Minimize production disruptions"

The POSCO labor union has decided to launch an indefinite strike starting November 2 after wage negotiations broke down. The decision came after the union and management failed to bridge their differences over the base-pay increase and performance-based compensation.

POSCO. Photo by Kang Jinhyung aymsdream@

According to the POSCO labor union, which is affiliated with the Federation of Korean Trade Unions' Federation of Metal Workers, the union will begin an indefinite strike at 7 p.m. on November 2 and plans to expand its scale in stages.

POSCO and the union held wage negotiations the previous day but failed to reach an agreement. The union said, "Negotiations broke down because management did not change its position on key issues," adding, "Management's attitude led us to decide to launch an indefinite strike."

The union has been seeking a 7.1% increase in base pay, an incentive payment equivalent to 600% of base pay, 50 shares of employee stock, and holiday bonuses equivalent to 200% of base pay. In contrast, management proposed a 2.5% base-pay increase, a one-time payment of 5 million won, a holiday bonus of 1 million won, and an additional payment equivalent to 10% of base pay in recent negotiations. The proposal also included raising the additional holiday-bonus rate to 15% from 2028 onward.

The two sides failed to narrow their differences over wages and compensation. The POSCO union held two partial strikes last month and has decided to escalate its labor dispute this time with an indefinite strike.

The union is also working to build a strike compensation fund in preparation for a prolonged strike. It is pursuing a plan to collect special dues from union members who do not participate in the strike.

Management plans to activate an emergency operating system to minimize production disruptions caused by the strike. It intends to adjust production plans to reduce the impact on customers and domestic steel-consuming industries.

A POSCO official said, "Despite the union's declaration that negotiations have broken down, we will continue dialogue and do our best to bring the wage negotiations to a successful conclusion."

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