POSCO and its 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, has notified the company of its intention to seek mediation from the Central Labor Relations Commission and plans to initiate formal dispute procedures.
According to reports from Aju Economy, 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 the company did not present proposals that were acceptable to its members.
Kim Sung-ho, chairman of the POSCO union, emphasized during a live broadcast on YouTube following the negotiations, "As of today, we declare the failure of the 2026 collective bargaining negotiations. If the company 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. It has highlighted wage increases, bonuses, and the expansion of employee stock ownership plans as its core demands, arguing for a compensation system that allows for long-term sharing of the company's growth, moving beyond a short-term reward structure.
In light of the failed negotiations, the union has notified the company of its intention to seek mediation from the Central Labor Relations Commission, marking the beginning of strike procedures. Previously, the POSCO union had completed internal procedures to push for strike actions, including a vote on whether to proceed with such actions.
However, both parties plan to continue negotiations during the mediation period.
In response to the breakdown of negotiations, POSCO stated, "Given the current management conditions, including low-cost competition from China, the spread of global protectionism, and unprecedented high oil prices, exchange rates, and 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 acknowledges the management environment."
* This article has been translated by AI.
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