POSCO Union Expands Partial Strike to Five Sites; Management Says, "There Has Been No Production Disruption"

[Financial News] The POSCO union expanded its partial strike from the previous two sites to five, effective the 18th. The union estimates that about 480 workers are covered by the expanded strike, while management puts the actual number of participants at around 100 each in Pohang and Gwangyang. POSCO said it has deployed available personnel and activated its emergency response system, adding that production has not been disrupted so far. According to POSCO and the POSCO Labor Union, affiliated with the Federation of Korean Trade Unions (FKTU)'s Federation of Korean Metalworkers' Trade Unions (FKMTU), the union added Pohang Steelworks' No. 1 hot-rolling mill, the No. 2 plate finishing and inspection section at the plate products plant, and Gwangyang Steel Works' No. 3 hot-rolling mill to the partial strike targets at 7 a.m. that day.
The union has been conducting a second partial strike scheduled to last 120 hours at Pohang Steelworks' No. 2 hot-rolling mill and Gwangyang Steel Works' No. 4 hot-rolling mill since 7 a.m. on the 16th. With the latest expansion, the partial strike now covers three sites in Pohang and two in Gwangyang.
The union and management have different tallies of the strike's size. The union said about 480 workers are covered by the strike, including those at the existing and newly added sites. It added that the actual number of participants can be confirmed only after the strike ends. The company estimates that around 100 workers each at Pohang Steelworks and Gwangyang Steel Works are currently participating in the strike.
In response to the increase in strike targets, POSCO is deploying available personnel and strengthening its emergency response system. The company said it is tightening on-site management across the entire process, from production to shipment, and that production is currently proceeding normally. It plans to operate an emergency production system to minimize the impact on domestic steel-consuming industries.
The strike targets include hot-rolling mills that produce hot-rolled steel sheet and part of the production process for thick steel plate. Hot-rolling mills heat and roll slabs produced through ironmaking, steelmaking and continuous casting to make hot-rolled steel sheet. Thick steel plate is made by rolling slabs and is mainly used in ships and buildings.
Labor-management negotiations have been suspended since the eighth round of talks on the 15th. According to POSCO, the president and CEO attended as management's representative, while the union's senior vice chair represented the labor side. Management proposed intensive negotiations on key issues through the 18th, but the two sides failed to reach an agreement, and the union launched its scheduled second partial strike.
A gap also remains over the key issues in the wage negotiations. The union is demanding a 7.1% increase in base pay, a 600% incentive payment, 50 shares under the employee stock ownership plan, and a 200% holiday bonus. The company proposed a 2.0% increase in base pay, a target-achievement incentive of 3.5 million won, 500,000 won in local gift certificates, and an expansion of the scope of increases for long-service anniversary bonuses.
The union said it expanded the strike targets in consideration of the company's bargaining stance and conditions at the worksites. The company said executives and managers, including the chief executive, continue working at the Pohang and Gwangyang sites to maintain normal operations and communication between labor and management. It added that it would work to prevent the strike from spreading and reach a settlement in the negotiations.

[email protected] Kim Mi-hee Reporter