In brief
South Korea’s POSCO union will vote this week on a tentative wage package that grants a 2.6 % increase in base pay and a one‑off ₩6 million payment. The offer falls short of the union’s 7.1 % demand and follows 30 rounds of talks and two partial strikes. Uncertainties remain about the vote’s outcome and whether the workers will go on strike if the deal is rejected.
On Sunday, 1 November, the POSCO union announced that it would hold a vote this week on a tentative wage agreement reached with the steelmaker’s management. The decision comes after 30 rounds of negotiations that began in June, during which the union staged two partial strikes in September to press its case for higher wages and bonuses.
The union’s latest offer, delivered on Friday, includes a 2.6 % increase in base pay, a one‑off payment of 6 million won (about US$4,500), and improved benefits. Those terms are noticeably below the union’s initial demand of a 7.1 % raise in base pay, a performance bonus equal to 600 % of base pay, 50 company shares per worker, and a holiday bonus equal to 200 % of base pay.
Negotiation Background
Over the course of almost six months, POSCO and the union entered into a series of discussions that sought to reconcile the company’s cost concerns with the workers’ demand for better compensation. The union’s two partial strikes in September—somewhat limited in scope—removed certain production lines and prompted management to engage in more aggressive bargaining.
Deal Details
While the offer of a 2.6 % base‑pay rise is more generous than the company’s previous 2.5 % suggestion, it still falls short of the union’s objective. The one‑off ₩6 million payment equates to roughly US$4,500, providing an immediate financial boost to workers. In addition, the agreement includes an expansion of the company’s benefits package, a concession that the union hopes will address long‑standing concerns about workplace safety and employee well‑being.
Both sides cited staffing shortages and aging facilities as factors that heighten the risk of workplace accidents. The union noted that higher wages and better benefits could alleviate these risks by encouraging safer working practices and reducing pressure on overworked staff.
Hardening the negotiation stance, the union warned that it would launch an indefinite strike starting 2 November if the company did not present a proposal deemed satisfactory. That threat underscored the urgency of the vote, which is scheduled for Saturday.
Management has not yet committed to further concessions beyond the 2.6 % increase, and the union has not indicated whether it will accept the offer if the vote passes. If the proposal is rejected, the possibility of an indefinite strike would place substantial pressure on the steelmaker’s operations and on South Korea’s broader industrial sector.
Whether the workers will ultimately approve the tentative deal remains undecided. The union’s vote could either cement the agreement and stave off a strike or lead to a new round of bargaining—and potentially a work stoppage—if the workers unleash a walkaway. Likewise, management’s willingness to revisit terms after a negative vote is unknown, leaving the outcome in a state of flux.
In sum, the POSCO union is poised to vote on a wage package that offers moderate gains. The decision will determine whether an indefinite strike threatens to disrupt production, but the final outcome of the vote and any subsequent negotiations or workplace actions remain uncertain for the foreseeable future.
