In brief
After 30 rounds of talks and two partial strikes, POSCO union will vote this week on a tentative wage agreement that falls short of its 7.1% base‑pay demand. The deal includes a 2.6% raise, a one‑off payment of 6 million won and improved benefits, with the union threatening an indefinite strike if rejected.
In Seoul, workers of South Korea’s POSCO steel plant are set to decide Wednesday on a wage agreement that management has offered after a marathon of talks. Union organizers announced the vote will take place this week, following a tentative deal that could shape the company’s payroll for the coming years.
Since June, workers and management have exchanged 30 rounds of proposals, negotiating the conditions that will determine the steelmaker’s wage structure for its roughly six‑thousand employees. Each cycle has added new demands and concessions, with both sides making incremental adjustments to the base salary and bonus framework.
During September, union members staged two partial strikes, halting production for brief periods to pressure the company into revising its wage scheme. Those walkouts were designed to signal the union’s resolve while preserving the ability to negotiate from a position of strength.
POSCO’s original demand called for a 7.1% increase in basic pay, a performance bonus equal to six hundred percent of the base salary, 50 company shares for each worker, and a holiday bonus equivalent to two hundred percent of the base. Management countered with lower figures, focusing on incremental wage steps.
The union said on Friday it had reached a tentative agreement that includes a 2.6% increase in base pay, a one‑off payment of 6 million won (about US$4,500), and improved benefits. The company’s earlier offer had stated a 2.5% increase and a 5 million won lump sum, so the latest proposal represents a modest lift beyond that.
Members are slated to cast ballots on Saturday, according to the union’s schedule, as the strike card remains in play. The union is preparing to hold an indefinite strike starting on Nov. 2 if the contract fails to meet its expectations.
Union officials said the company’s latest offer falls short of the 7.1% base‑pay target, a gap they argue leaves workers vulnerable amid rising living costs and the steel industry’s cyclical nature. The union also cited staffing shortages and aging facilities as factors heightening accident risk.
Management’s earlier counter‑proposal in July had offered a 2.5% raise and 5 million won, which the union rejected as insufficient. The current tentative agreement attempts to bridge the gap by adding a larger lump sum and enhanced benefits, though it still lags behind the union’s 600% performance bonus request.
POSCO, one of Asia’s largest steel producers, employs nearly six thousand workers across its domestic plants. The recent labor actions have spurred interest among industry observers who note that wage negotiations in the metal sector can ripple through downstream markets, affecting manufacturers and exporters nationwide.
The outcome of the union vote will be closely watched, as both sides prepare for the next phase whether it leads to a signed agreement or an extended strike. Industry analysts anticipate that the result could set a benchmark for wage discussions across Korea’s heavy‑industry sector.
The union’s strategy involves maintaining production stalls only as leverage, ensuring that workers are not adversely affected by prolonged disruptions. They have mobilized committees to address safety, with plans to report any incident promptly. Meanwhile, company representatives aim to reach a deal that keeps the steel plant competitive while avoiding a costly shutdown that could cost billions in lost output.
