The shipbuilding and steel industries have entered a critical wage and collective bargaining season this year, but a widening gap between labor and management is raising the specter of a summer strike. Ongoing disputes over wages and bonuses, coupled with subcontractor unions' demands for primary negotiations, are intensifying tensions.
According to industry sources, the POSCO labor union is conducting a strike vote from July 8 to 9. The outcome of this vote will determine whether a strike will occur. If realized, it would mark the first strike in POSCO's history since its founding in 1968.
The POSCO union has prioritized demands for wage increases, bonuses, and the expansion of employee stock ownership plans in this year's negotiations. They argue for a compensation system that allows for long-term sharing of the company's growth, moving beyond a short-term reward structure.
Industry analysts believe the union is more likely to use the strike vote as leverage for further negotiations rather than immediately proceeding with a strike. A POSCO union representative stated, "We will consider a strike after assessing the proposals from management, which are expected on July 14."
Hyundai Steel is also facing challenges in its negotiations. The two sides have met five times but have yet to find common ground. Reports indicate that the union is demanding bonuses increased by 150% compared to last year.
This year, the implementation of the Yellow Envelope Law has intensified subcontractor unions' demands for primary negotiations, suggesting that the summer strike season may be prolonged compared to previous years.
The Korean Metal Workers' Union held a press conference in front of the Sejong Center in Seoul, declaring a full-scale struggle to secure primary negotiations. According to the union, 24 primary companies are facing demands from 77 branches and 21,200 members for these negotiations, but the primary companies have yet to respond.
Park Sang-man, chairman of the Metal Workers' Union, stated, "The fight for primary negotiations is not just for indirectly employed workers but for all metal workers. If primary companies continue to refuse negotiations, we will escalate our struggle starting with a general strike on July 15."
Choi Myung-sik, chairman of the Hyundai Steel Non-Regular Workers' Union in Chungcheongnam-do, emphasized that the primary company, Hyundai Steel, ultimately decides on employment, labor conditions, and safety issues, arguing that negotiations at the subcontractor level alone cannot resolve wage and welfare disparities compared to regular employees.
Kang In-seok, chairman of the Metal Workers' Union's Geoje, Tongyeong, and Goseong Shipbuilding Subcontractor Union, announced specific strike plans, indicating that if primary negotiations do not occur, they will escalate their actions. He noted, "On July 2, the Wellive branch and the Geoje, Tongyeong, and Goseong Shipbuilding Subcontractor Union received a decision to cease mediation from the local labor committee. Having secured legal strike rights, we plan to hold a general rally for subcontractor workers on July 23 and 25, and in August, we will initiate strike actions at Hanwha Ocean's site."
Meanwhile, there are concerns that this year's wage negotiations could increase uncertainty in production sites. The shipbuilding industry is facing challenges in meeting delivery deadlines due to a surge in orders, while the steel industry is experiencing a downturn, making production stability more critical than ever. Prolonged labor disputes could disrupt production and impact supply chain stability.
* This article has been translated by AI.
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