POSCO union to vote on wage deal on the 7th; tentative agreement reached ahead of third strike

[Financial News] The POSCO Labor Union will hold a membership vote on the tentative agreement for this year’s wage negotiations on the 7th. Labor and management tentatively agreed on the 30th of last month to a 2.6% base-pay increase and payments totaling 6 million won, including an incentive. Reaching an agreement ahead of the third strike the union had announced for the 2nd of this month has also eased concerns about production disruptions from an expanded strike.
According to POSCO and the POSCO Labor Union of the Federation of Korean Metalworkers’ Trade Unions (FKMTU), which is affiliated with the Federation of Korean Trade Unions (FKTU), the union will hold a vote on the tentative agreement from 6 a.m. to 5 p.m. on the 7th. If it wins majority approval, this year’s wage negotiations will be finalized.
The tentative agreement includes a 2.6% increase in base pay and payments totaling 6 million won: a 3.5 million won target-achievement incentive, 2 million won in settlement and labor-management harmony incentives, and 500,000 won in local gift certificates.
The agreement released by the union also includes a special advancement by three salary steps and an increase in holiday bonuses. The holiday bonus will include a payment of 2 million won plus an additional 20% of base pay, with the percentage-based portion rising to 30% from 2028 onward. The parties also agreed to add a shift holiday allowance, increase the on-site and maintenance allowances, and improve medical expense support, including coverage for spouses and children.
POSCO and the union began wage negotiations on June 16 and held around 30 rounds of working-level and full negotiations over about 140 days. When their differences over pay increases and improved working conditions remained unresolved, the union staged two partial strikes in September.
The union had announced that if negotiations made no progress, it would begin a third strike on the 2nd of this month, with no end date and an expanded scope. However, labor and management reached a tentative agreement at full negotiations held at the company’s headquarters in Pohang on the 30th of last month.
POSCO said that, in light of the difficult business environment—including slowing steel demand at home and abroad and the spread of global protectionism—labor and management had agreed to work toward stabilizing operations at the earliest opportunity and cooperating with each other.
In an internal message to union members, POSCO Labor Union Chairman Kim Seong-ho said the tentative agreement was the best possible outcome, achieved through the union leadership’s efforts to reflect the wishes of its members.

[email protected] Kim Mi-hee Reporter