POSCO faces potential strike as union votes in favor of walkout

[Courtesy of POSCO]

The labor union of South Korea’s leading steelmaker POSCO has voted in favor of a strike, heightening tensions in the ongoing wage and collective bargaining negotiations with its management. With the final arbitration meeting of the Central Labor Relations Committee scheduled for Monday, the company finds itself on the precipice of its first strike in 55 years should an agreement not be reached.

POSCO’s labor union announced Sunday that the strike was approved following a two-day vote on October 28 and 29. According to the union, out of 11,145 participants in the vote, 8,367 members, or 77.79 percent, cast their ballots in favor of the strike.

The union is calling for a substantial increase in the basic wage, specifically a 13.1 percent raise, among others, representing recent consumer price hikes. This is a significant departure from previous years when demands for wage increases typically hovered around 6-7 percent.

The management argues that meeting this demand would be financially challenging, with the additional costs estimated to be around 1.6 trillion won ($1.18 billion).

As tensions between labor and management have escalated in recent times, POSCO’s suppliers have also voiced concerns, releasing statements that reflect the growing apprehension about the impending strike.

Despite holding 24 rounds of negotiations for the wage and collective bargaining agreements since May, both labor and management have failed to reach a consensus.

As a result, the labor union has declared an impasse in negotiations and applied for arbitration with the Central Labor Relations Committee to secure the right to strike. If Monday’s final mediation meeting fails to yield an agreement, the possibility of a full-scale strike becomes increasingly likely.