In brief
POSCO workers are set to vote on a tentative wage pact that includes a modest 2.6% base‑pay increase and a six‑million‑won bonus, falling short of their original 7.1% demand. The offer follows 30 negotiation rounds, partial strikes, and an ultimatum for an indefinite strike if rejected. Union leaders stress lingering concerns over staffing shortages, aging equipment and accident risk.
Unionized workers at South Korean steelmaker POSCO are scheduled to vote this week on a tentative wage agreement reached with management. The proposal, announced on Friday, offers a 2.6 percent increase in base pay, a one‑off payment of 6 million won (US$4,500) and improved benefits. It falls short of the union’s original 7.1 percent demand, prompting the union to warn of an indefinite strike if the offer is rejected.
Negotiation Background
According to Yonhap, POSCO and its union have been at the bargaining table for 30 rounds of talks since June. During that period the union staged two partial strikes in September to press for higher wages and bonuses.
Management’s latest offer follows an earlier proposal that included a 2.5 percent base‑pay increase and a one‑off payment of 5 million won. The union had previously demanded a 7.1 percent raise, a performance bonus equal to 600 percent of base pay, 50 company shares per worker and a holiday bonus equivalent to 200 percent of base pay.
Union Concerns and Threats
Union representatives cited staffing shortages and aging facilities as factors that could heighten the risk of workplace accidents. In addition to wage demands, the union has highlighted these safety concerns as part of its bargaining position.
Facing the current offer, the union warned in a statement that it would launch an "indefinite" strike beginning on November 2 if POSCO fails to present an acceptable wage proposal. The threat of an indefinite strike has added urgency to the union’s upcoming vote scheduled for Saturday.
POSCO’s decision to offer a 2.6 percent raise, as opposed to the union’s initial request, reflects management’s willingness to inch closer to a compromise while attempting to preserve profitability amid a challenging market for steel. The one‑off payment of 6 million won is positioned as a temporary bridge between the two sides.
In a broader context, POSCO is South Korea’s largest steelmaker and a key player in the global steel market. The company’s bargaining outcomes are closely watched by both workers and industry analysts.
Despite the agreement, uncertainties remain. The union’s stance on the proposed benefits package and its willingness to accept the price adjustments without striking are still undecided. The upcoming vote will determine whether POSCO can move forward with production without a major labor disruption.
Analysts note that the outcome of the vote could affect POSCO’s ability to meet its production targets in the coming months, as well as set a precedent for labor negotiations across South Korea’s industrial sector.
For now, POSCO union members are awaiting the Saturday vote that will either confirm the tentative agreement or trigger further negotiations that could potentially bring the workers back to the strike line. The union’s final decision will likely impact not only daily operations at the company but also the broader steel industry's labor landscape.
