POSCO's labor and management have failed to resolve their differences over this year's wage and collective bargaining agreement, leading to the company's first strike in its 58-year history.
According to industry sources, the POSCO union began a 48-hour partial strike today. This marks the first strike since the establishment of the Pohang Iron and Steel Company in 1968.
The union plans to halt operations at all lines of the Gwangyang hot-rolled steel plant and some lines at the Pohang No. 2 electrical steel plant. The hot-rolled plant processes the surface of steel sheets before they move to the cold-rolling process, while operations for producing high-quality electrical steel sheets will also be suspended in Pohang.
The union has stated that if there is no change in the management's stance during this initial partial strike, it will escalate its actions. This raises the possibility that the current strike could either be a one-time event or lead to a prolonged labor dispute, depending on the outcome of future negotiations.
Previously, the union set today as the final deadline for management to present a constructive proposal, warning that it would proceed with the partial strike if no additional proposals were made.
Labor and management have been negotiating this year's wage and collective bargaining agreement but have been unable to find common ground on wage increases and performance bonuses. The union is demanding a 7.1% increase in base salary and a bonus of 600%, while management has proposed a 2.0% increase in base salary and a payment of 3.5 million won, leaving a significant gap between the two sides.
After the negotiations broke down, the union applied for mediation from the Central Labor Relations Commission and received a decision to cease mediation, securing the legal right to strike. In a subsequent vote on whether to strike, 92.2% of union members voted in favor.
On September 7, POSCO CEO Lee Hee-keun visited the Pohang union office to meet with union chairman Kim Sung-ho, but it was reported that the meeting only reaffirmed the existing differences in their positions.
Regarding the strike, POSCO stated, "We have emergency plans in place, including alternative personnel, so there will not be a significant impact on overall production and operations at the steel mills immediately." However, they acknowledged that if the strike continues for an extended period, production delays for cold-rolled and galvanized steel, as well as electrical steel, would be unavoidable.
* This article has been translated by AI.
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