POSCO labor dispute and strike escalation

The POSCO labor union has threatened its first strike in 58 years following a deadlock in collective bargaining negotiations. The union issued a deadline of September 9 for management to present a new proposal, citing demands for improved wages, welfare, manpower, and safety systems. A significant point of contention involves the creation of a ‘Self-Sustaining Safety Special Committee’ with binding authority, which management has resisted in favor of existing consultative bodies.

As negotiations stalled, the union's demands included a 7.1% base pay increase, while management proposed only 2.0%. Tensions escalated as union leader Kim Seong-ho engaged in a symbolic head-shaving protest and reported physical altercations between officials and management at the Pohang steelworks.

A 48-hour partial strike commenced on September 9, targeting the Pohang and Gwangyang steelworks, alongside a refusal to perform overtime and holiday work.

In response to the industrial action, Pohang City convened an emergency Regional Economic Crisis Response Committee. Local authorities expressed concern that reduced production and shipments could negatively impact partner companies, employment, and consumer spending, particularly ahead of the Chuseok holiday. The city, in coordination with the Ministry of Employment and Labor, plans to monitor production trends and prepare support measures across employment, finance, and taxation sectors to minimize regional economic damage.

The union has warned that if progress is not made, the industrial action could expand to 120 hours starting September 16, with the potential for a full-scale strike in October.