Seoul:Unionized workers at South Korean steelmaker POSCO are set to launch an "indefinite" strike next week unless the company presents an acceptable offer in ongoing wage negotiations, the union announced on Monday. The decision comes after wage discussions between POSCO and the union failed to reach an agreement over the weekend.
According to Yonhap News Agency, the strike is scheduled to begin at 7 a.m. on November 2. It will involve workers in non-core production lines at POSCO's plants in Pohang and Gwangyang, sparing those in the blast furnace, heating, and steelmaking lines, as stated by union spokesperson Park Chun-su.
The union has expressed willingness to continue negotiations if POSCO provides any significant new proposals before the strike commencement. In response to the potential strike, POSCO has prepared an emergency operational response strategy to adjust production volumes and minimize disruptions to customers and domestic demand industries.
In September, unionized workers at the Pohang and Gwangyang plants conducted two partial strikes, marking the first industrial action since POSCO's establishment in 1968. POSCO employs approximately 17,000 people, with around 10,100 being union members.
The union is demanding a 7.1 percent increase in base pay, a performance bonus of 600 percent of base pay, 50 company shares per worker, and a holiday bonus of 200 percent of base pay. They have also raised concerns about staffing shortages and aging facilities, which they claim could heighten safety risks. POSCO management has countered with a proposal of a 2.5 percent base pay increase and a one-off payment of 5 million won (US$3,770).
Shares in POSCO Holdings dropped 1.63 percent to 271,000 won as of 1035 a.m., significantly underperforming compared to the broader KOSPI's 0.48 percent loss.
Source Yonhap News Agency