POSCO and its labor union have failed to reach an agreement on wages and collective bargaining. Despite ongoing discussions since the previous day, the two sides could not narrow their differences on key issues. With the union leaving open the possibility of a third partial strike, tensions in the production facilities are rising.
According to industry sources, POSCO and the union held practical negotiations from October 13 until the morning of October 14, followed by the 9th round of main negotiations, but they failed to produce a tentative agreement on wage negotiations.
Previously, the two sides conducted three rounds of practical negotiations on October 7, 8, and 13, but could not establish a concrete compromise.
The main points of contention in this round of negotiations are the proposed increase in base salary and the amount of performance bonuses. The union is demanding a 7.1% increase in base salary, a 600% performance bonus, 50 shares of employee stock ownership, and a 200% holiday bonus.
In contrast, the company presented an additional proposal on October 14, which included a 2.2% increase in base salary and a one-time payment totaling 4.5 million won. This one-time payment consists of a 3.5 million won performance bonus, a 500,000 won local love gift certificate, and a 500,000 won settlement bonus. The proposed increase in base salary is 0.2 percentage points higher than the previous offer of 2.0%.
The union has expressed that the company's additional proposal does not meet their expectations. In a statement issued after the negotiations, the union acknowledged, "We recognize that the company’s proposed morale-boosting measures are a step forward in difficult circumstances," but emphasized, "This year, a proposal that adequately reflects the hard work and sacrifices made by the workforce must be presented."
Previously, POSCO and the union experienced two partial strikes during the wage negotiations. Negotiations were halted due to the union leadership elections, but resumed earlier this month with practical discussions aimed at normalizing talks.
The union has indicated that if there is no progress on the company's additional proposal, they may initiate a larger third partial strike. The company is reportedly maintaining an emergency operational system, preparing for potential additional disputes by adjusting production schedules and deploying available personnel.
However, the union has left the door open for further negotiations, stating they are willing to engage in dialogue if the company presents a more proactive proposal.
Meanwhile, concerns are growing that prolonged labor disputes at POSCO could lead to production disruptions amid a backdrop of global steel oversupply and declining demand.
In particular, if a third partial strike materializes, there are fears that it could further burden production schedules and operational management.
* This article has been translated by AI.
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