POSCO is currently facing turmoil both internally and externally. The prolonged labor dispute over wages and collective agreements has been exacerbated by ongoing internal discord within the union. As global steel market conditions worsen and competition from low-cost Chinese products increases, the need for a united response from both management and labor has never been more critical, yet the conflict shows little sign of resolution.
The internal discord within the union has intensified recently due to controversies surrounding its leadership. Kim Seong-ho, chairman of the POSCO Labor Union, faced scrutiny after meeting with a senior company executive for a golf outing just before a critical round of negotiations. While Kim acknowledged the meeting, he denied any possibility of a secret agreement.
As news of the meeting surfaced during a time of intense negotiations, questions about its appropriateness have arisen within the union. Reports indicate that there are calls for a public explanation regarding the circumstances of the meeting. With the upcoming union leadership elections scheduled for October, the atmosphere remains tense.
It is important to note that the internal controversies and labor disputes are separate issues. However, internal instability during negotiations is detrimental to all parties involved. To strengthen its bargaining power against management, the union must foster trust and unity among its members. If there are concerns raised internally, they should be addressed transparently to eliminate unnecessary disputes and focus on negotiations.
With elections approaching, it is crucial that this controversy does not devolve into mere political infighting within the union. Before determining who is right or wrong, it is essential to address the questions raised by union members. This approach will allow the upcoming leadership elections to focus on policies and visions rather than unnecessary suspicions and conflicts.
Management must also recognize that this conflict cannot be dismissed as merely an internal union issue or something that time will resolve. The differences in positions regarding wages and bonuses, as well as accumulated grievances related to staffing, safety, and working conditions, are all being expressed through this conflict.
POSCO is navigating a challenging external environment. The company must address global steel oversupply, competition from low-cost Chinese products, and sluggish domestic demand while also making significant investments for carbon neutrality and securing future growth drivers. Maintaining competitiveness in the core steel sector while continuing future investments is a daunting task.
In such times, trust among employees is essential. If the company seeks to ask its members to share the burden of a difficult business environment, it must provide clear explanations for why this is necessary. Conversely, employees should not prioritize their demands without acknowledging the realities faced by the company, as this will hinder the search for sustainable solutions. A process of mutual recognition and finding common ground is necessary.
Moreover, POSCO is closely linked to key domestic industries such as automotive and shipbuilding. If the labor dispute continues for an extended period, it could lead to production disruptions that would not only affect POSCO but also jeopardize the hard-won trust and stability of supply with customers.
What is needed now between POSCO and its labor force is not a contest of endurance. The external competition is intensifying, and there are numerous internal challenges that must be addressed. Instead of wasting energy on mutual blame, both sides should work swiftly to resolve the conflict and realign their focus.
Signing an agreement does not automatically resolve all conflicts. To achieve true reconciliation, the distrust and internal divisions revealed during this process must also be addressed. To withstand external pressures, internal cohesion is essential. What POSCO needs most at this moment is to rebuild internal trust.
* This article has been translated by AI.
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