POSCO union to launch indefinite strike from the 2nd of next month as wage talks collapse

[Financial News] POSCO’s labor union has decided to launch an indefinite strike starting on the 2nd of next month after wage negotiations broke down. The decision came as the gap between labor and management over the size of the base-pay increase and performance-based compensation, among other issues, failed to narrow. The company plans to activate an emergency operating system to minimize the impact on steel production and supplies to customers.
According to the POSCO Labor Union, affiliated with the metalworkers’ federation of the Federation of Korean Trade Unions (FKTU), on the 24th, the union plans to launch an indefinite strike at 7 p.m. on November 2 and expand its scale in phases.
The union declared the negotiations deadlocked after failing to reach an agreement with the company in wage talks held the previous day. The union said, “The agreement fell through because the company did not change its position on key issues,” and added, “The company’s stance led us to decide to launch an indefinite strike.”
The biggest point of contention between labor and management is the size of the pay increase. The union is demanding a 7.1% increase in base pay, a 600% encouragement bonus, 50 shares under the employee stock ownership plan, and a holiday bonus of 200%, among other items.
In recent negotiations, the company proposed a 2.5% increase in base pay, a lump-sum payment of 5 million won, and a 1 million won holiday bonus plus 10% of base pay. It said it would raise the rate linking the holiday bonus to base pay to 15% after 2028.
The union is also preparing funds for a prolonged strike. It is pursuing a plan to collect special dues from members who do not take part in the strike to build up a strike compensation fund.
POSCO’s labor and management had also failed to find common ground in wage negotiations last month, resulting in two partial strikes. This time, with the union announcing an indefinite strike, attention is also focused on the potential impact on production sites.
POSCO plans to adjust its production schedule and activate an emergency operating system in preparation for the strike. The aim is to minimize the impact on customers and domestic steel-consuming industries.
A company representative said, “Despite the union’s declaration that negotiations have broken down, we will continue dialogue and work to ensure that wage negotiations conclude amicably.”
[email protected] Kim Kyung-min Reporter