Posco, labor union agree on wages, deters strike

Posco labor union [Photo by Yonhap]

Posco has successfully concluded wage and collective agreement negotiations for 2023 with its labor union amid the looming threat of the company’s first strike since it was founded in 1968.

According to Posco’s announcement on Thursday, the labor union, which is affiliated with the Federation of Korean Trade Unions (FKTU), conducted a vote among its members on the preliminary agreement reached during the negotiations. Out of 10,856 participants, 5,527 members or 50.91 percent expressed their approval for the agreement.

The key points of the agreement include a basic wage increase of 100,000 won, a one-time payment of 7 million won, and the introduction of a bi-weekly four-day workweek system. The agreement also includes plans for a task force (TF) to be formed for the restructuring of performance-based pay systems and welfare benefits.

The successful resolution of the negotiations is a significant milestone for Posco, as the company successfully warded off the strike threat. A company official expressed optimism about the agreement, saying, “We hope that this year’s wage negotiations will serve as a fresh starting point for Posco to continue its tradition of labor-management harmony.”