South Korean steelmaker POSCO could face the first strike in its 58-year history, as the company's labor union has set September 9 as the final deadline for wage negotiations and announced plans for a 48-hour partial strike if the talks fail to produce an agreement, according to media reports.
The POSCO labor union, affiliated with the Federation of Korean Metalworkers' Trade Unions, has notified management that it intends to proceed with the partial walkout unless the company changes its position by the deadline. If the strike takes place, it would end POSCO's record of avoiding a labor strike since the company was founded in 1968.
Over 92 percent of union members back industrial action
The union has already secured strong support from its members for industrial action. The union also secured the legal right to strike after mediation by South Korea's National Labor Relations Commission ended on August 18 without an agreement.
The union is seeking a 7.1 percent increase in base salaries, incentive payments equivalent to 600 percent of monthly salary, 50 POSCO shares for employees and a 200 percent holiday bonus, among other demands. It is also seeking improvements regarding staffing shortages, working hours, workplace safety, employee health and welfare.
The union stated that the dispute is not solely focused on wage increases, arguing that longstanding problems involving insufficient staffing, excessive working hours and safety conditions also need to be addressed.
POSCO estimates union demands would cost KRW 1.4 trillion
POSCO has estimated that accepting the union's overall demands would require approximately KRW 1.4 trillion ($1 billion) in additional resources and has said that such a burden would be difficult to accept under current steel market conditions.
The company pointed to deteriorating conditions in the steel industry, including an influx of low-priced Chinese steel products and increasing global protectionism, as factors weighing on its ability to meet the demands.
POSCO prepares emergency response plan ahead of possible strike
POSCO stated that it would activate an emergency response system to minimize operational disruptions if the planned 48-hour partial strike goes ahead. At the same time, the steelmaker said it remains focused on reaching an agreement through negotiations before the September 9 deadline.
