POSCO labor and management resume formal talks after a month: tentative deal or third partial strike?

[Financial News] Attention is focused on the direction of negotiations that stalled after two partial strikes, as POSCO labor and management resume formal wage talks after about a month. With differences over the base-pay increase and incentive payments still unresolved, key factors include whether management makes an additional offer and whether the union adjusts its demands. If they fail to find common ground, further talks may follow or the conflict could escalate to a third partial strike.
According to industry sources on the 14th, POSCO labor and management began formal talks on this year’s wage negotiations at 2 p.m. at the company’s headquarters in Pohang, North Gyeongsang Province. It was about a month since the previous round on the 15th of last month. The two sides held three working-level meetings on the 7th, 8th and 13th of this month, but have not disclosed any specific points of agreement.
The main issues are the wage increase and level of compensation. The union is demanding a 7.1% increase in base pay, incentive payments of 600%, 50 shares of employee stock, and holiday bonuses of 200%, among other things. The company, by contrast, has proposed a 2.0% base-pay increase, a 3.5 million won target-achievement incentive and 500,000 won in local gift certificates. The gap in base-pay increase rates alone is 5.1 percentage points. POSCO said there has been no change to the company’s publicly disclosed offer.
Depending on the outcome of the talks, labor-management relations could take one of three paths: a tentative agreement, further negotiations or a third partial strike. A tentative agreement may be reached if management raises its compensation offer somewhat and the union adjusts its demands. However, with no change in either side’s position confirmed, it is difficult to be optimistic about an early settlement. Even if they fail to reach a conclusion today, the talks can continue if both sides agree to further negotiations.
Meanwhile, if negotiations make no progress, a third partial strike could become a reality. After staging two partial strikes last month, the union reorganized its dispute response committee following an executive election on the 2nd. With incumbent chair Kim Seong-ho winning re-election, the union warned that it would prepare for a third partial strike and step up its industrial action if the company delayed negotiations.
The government is also keeping a close watch on the labor talks. Minister of Employment and Labor Kim Young-hoon said at a parliamentary audit the previous day that the regional labor office with jurisdiction had conducted 13 guidance visits and meetings with POSCO labor and management, but the dispute remained unresolved. Kim said that factors including the union chair election had contributed to delays in negotiations, adding, “We will take an active role in guiding the negotiations.”
The impact of any further strike on production is another variable. During last month’s partial strike involving some hot-rolling and plate production processes at the Pohang and Gwangyang Steel Works, the company said it deployed replacement workers and there was no disruption to production. However, if the processes affected by the strike and the number of participants increase, or the labor dispute drags on, pressure on operations and product shipments could grow.
A POSCO official said, “Based on the principle of labor-management coexistence, we will continue to communicate with the union and work to reach an agreement promptly and smoothly.”

[email protected] Kim Mi-hee Reporter