POSCO's management and labor union have failed to reach an agreement in this year's wage and collective bargaining negotiations. The POSCO labor union, affiliated with the Korean Confederation of Trade Unions, plans to file for mediation with the Central Labor Relations Commission and initiate formal dispute procedures.
According to Ajou Economic Daily, the sixth round of negotiations held on the morning of July 23 did not yield any consensus on key issues such as wage increases, bonuses, and employee benefits. The union declared the negotiations a failure, stating that management did not present proposals that would be acceptable to its members.
Kim Sung-ho, chairman of the POSCO union, emphasized during a live broadcast on YouTube after the negotiations, "As of today, we declare the failure of the 2026 collective bargaining negotiations. If management continues to ignore the anger of the workforce, we will not hesitate to take collective action in accordance with legal procedures."
The union is demanding a 7.1% increase in base salary and a bonus equivalent to 600% of monthly pay. The POSCO union has highlighted wage increases, bonuses, and the expansion of employee stock ownership plans as its core demands in this round of negotiations. They argue for a compensation system that allows for long-term sharing of the company's growth results, moving beyond a short-term reward-focused wage structure.
Following the breakdown of negotiations, the union plans to apply for dispute mediation with the Central Labor Relations Commission and proceed with strike preparations. Previously, the POSCO union had completed internal procedures to push for strike actions, including a vote on whether to support such measures.
However, both parties plan to continue additional negotiations during the mediation period.
In response to the failed negotiations, POSCO stated, "Considering the current management conditions, including low-cost competition from China, the spread of global protectionism, and unprecedented high oil prices, high exchange rates, and high interest rates, it is difficult to accept the union's demands. We will do our best to communicate with the union to reach a reasonable and amicable agreement that recognizes the management environment."
* This article has been translated by AI.
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