In brief
POSCO union members are preparing for a vote on a tentative wage agreement that includes a 2.6% base‑pay increase and a 6 million‑won lump sum, falling short of the union’s original 7.1% demand. Management’s latest offer also improves benefits, but the union warned of an indefinite strike if the deal is rejected. The vote is scheduled for Saturday in Seoul.
In Seoul on Monday, unionized workers at South Korean steelmaker POSCO are set to vote this week on a tentative wage agreement reached with the company, according to South Korean news outlet Yonhap.
Negotiations between POSCO management and the union have spanned almost seven months, with the two sides holding 30 rounds of talks since the first session in June. A series of partial strikes staged in September signaled rising tension, as workers walked out on two separate occasions in an effort to secure higher wages and performance‑based bonuses.
On Friday, the union announced that a tentative deal had been settled after the latest offer from management. While the proposal reflects a smaller increase than the union had originally demanded, it still marks a significant concession from the steelmaker’s side.
Agreement Details
The agreement reached, as reported by Yonhap, offers a 2.6 percent increase in base pay, a one‑off payment of 6 million won (about US$4,500) and several improvements to the workers’ benefits package. In contrast, the union’s opening demand called for a 7.1 percent bump in base salary, a performance bonus equal to 600 percent of base pay, 50 company shares per worker, and a holiday bonus equivalent to 200 percent of base pay.
Remarkably, the management’s latest proposal also includes measures that address safety concerns, which the union has cited as a critical issue due to staffing shortages and aging plant infrastructure that may heighten the risk of workplace accidents. The union’s leadership maintains that such conditions justify the more aggressive salary and bonus demands they have presented.
Despite the tentative agreement, the union’s representatives have cautioned that the offer falls short of what they consider an acceptable resolution. They have warned that if the deal is not ratified by their members, the union will initiate an indefinite strike starting on November 2.
Union members are scheduled to vote on the deal on Saturday, the same day the company will provide the final vote details to the workforce. With the floor open for a formal vote, the result will determine whether negotiations will continue or whether the union will proceed with a strike that could halt operations at POSCO’s main facilities.
