POSCO labor and management wage dispute

Kim Seong-ho was re-elected to a third term as chairman of the POSCO labor union, a victory expected to maintain continuity in ongoing negotiations with company management. The union has sought a 7.1% base pay increase and significant incentive payments, while management has expressed concerns regarding the financial strain such demands would place on the company during a period of poor industry performance.

Negotiations have reached a deadlock. Despite management increasing its offer to a 2.5% base salary hike and a 5 million won lump-sum payment, the union rejected the proposal, stating it fails to address member sacrifices. Following previous partial strikes, the union has threatened a third round of industrial action. To resolve the impasse, management has proposed a meeting between top executives from both sides.

Following the collapse of wage talks, the union has announced an indefinite strike scheduled to begin at 7 p.m. on November 2. The union’s specific demands include a 7.1 percent increase in basic pay, a performance bonus equivalent to 600 percent of base pay, 50 company shares per worker, and a 200 percent holiday bonus. While management offered expanded welfare benefits, such as increased medical support and assistance for infertility treatments, the union maintains these measures are insufficient.

POSCO has stated it will implement emergency operating systems and adjust production plans to minimize disruptions. The company expects approximately 60 workers from the Pohang and Gwangyang plants to participate in the initial strike actions.