POSCO may face its first full-scale strike since its founding in 1968, raising concerns about the disruption of its long-standing tradition of no strikes. The union recorded a high approval rate of 92.17% in a vote on potential strike action last month. With the Central Labor Relations Commission recommending an extension of the mediation period, there remains time for dialogue until the final mediation meeting on the 18th. This week's scheduled negotiations between labor and management are seen as a crucial opportunity for resolution.
Finding a compromise will be difficult if both sides only wait for the other to make concessions. The company should not dismiss labor demands solely based on management conditions but should instead propose feasible compensation plans. The union, too, needs to adjust its demands in light of the realities of the steel industry. Both sides must take a step back to create a productive outcome.
The business environment for POSCO is more challenging than ever. China's oversupply of steel is putting pressure on global prices and profitability, while worldwide demand for steel has declined. Trade barriers in major countries, including the United States, are increasing, and the costs associated with transitioning to carbon neutrality are significant. If a strike occurs, it could impact industries reliant on steel, such as automotive, shipbuilding, electronics, and construction, leading to increased costs and delays in the domestic manufacturing supply chain.
Labor demands should not be dismissed as excessive. It is unacceptable to unilaterally sacrifice wages and welfare issues due to management conditions. The key is to find common ground that ensures both the company's survival and the improvement of worker treatment.
This year's conflict also involves the direct employment issue of approximately 7,000 employees from partner companies. Some interpret this in connection with Chairman Jang In-hwa's potential reappointment. However, as political interpretations of management decisions increase, labor disputes become more complex. The question of Chairman Jang's reappointment should be viewed separately from labor relations. The criteria for evaluating his reappointment should focus on POSCO's future competitiveness and the recovery of its core steel business, not on labor disputes.
The union should not escalate strike intensity simply because of the high approval rate for strike action. A decline in the competitiveness of the steel industry will also jeopardize job security. In a situation where significant investments are needed for competition with China, carbon neutrality, and the transition to eco-friendly steel, choices that weaken investment capacity will ultimately burden the union in the long run.
POSCO has a history of resolving disputes through dialogue without strikes for 58 years. Now is the time to leverage the accumulated trust between labor and management. In this week's negotiations, management should present realistic compensation plans, while the union should propose reasonable demands considering the business environment. The crisis facing POSCO cannot be resolved by the strength of either side alone. A spirit of mutual understanding, recognizing the difficult realities and seeking solutions together, is essential.
* This article has been translated by AI.
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