The labor union at POSCO announced on October 23 that wage negotiations have officially collapsed. Despite efforts from POSCO CEO Lee Hee-keun to broker a last-minute deal, the two sides could not reconcile their differences regarding compensation plans. The union plans to initiate an indefinite strike starting November 2.
According to industry sources, the Korean Metal Workers' Union of the Korean Confederation of Trade Unions confirmed the failure of the 28th round of negotiations and announced guidelines for strike actions, including an indefinite strike. After a meeting between union and management representatives, the union resumed practical negotiations but reported that management maintained its stance on key issues, preventing a final agreement.
Prior to this, POSCO and the union had been engaged in intense negotiations since October 22 to reach a settlement. Notably, on the afternoon of October 23, CEO Lee Hee-keun met directly with union representatives to seek a breakthrough, but the two sides could not resolve their differences.
The main points of contention included the level of compensation and morale-boosting measures. Management proposed a final offer that included a 2.5% increase in base salary and a one-time payment totaling 5 million won. The base salary increase amounts to approximately 83,000 won, while the one-time payment consists of a 3.5 million won performance incentive, 500,000 won in local gift certificates, and 1 million won as a settlement bonus.
Additionally, the proposal included plans to increase holiday bonuses starting in 2027, with 1 million won for Lunar New Year and an additional 10% of the average 341,000 won for Chuseok. After 2028, the additional payment rate would rise to 15%, averaging 511,000 won. The proposal also aimed to expand medical expense support to include spouses and children.
However, the union deemed this proposal insufficient to adequately compensate members for their sacrifices. They specifically requested further improvements to the morale-boosting measures, including special wage adjustments equivalent to the first-year salary level, but negotiations failed to reach an agreement.
As a result, the union plans to implement early wearing guidelines for members starting at 7 a.m. on October 26 and will cease emergency service responses in designated departments after work hours. The indefinite strike is scheduled to begin at 7 p.m. on November 2.
Kim Sung-ho, chairman of the POSCO union, emphasized in a message to members, "On November 2, the POSCO union will enter an indefinite strike. While the union has chosen dialogue and shown patience, we must demonstrate the strength of workers to management, which has ultimately chosen a path of confrontation this year."
The collapse of these negotiations has increased uncertainty in POSCO's production operations. However, the actual impact on production will likely vary depending on the number of participants in the strike and the departments involved.
* This article has been translated by AI.
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