Why is POSCO Suddenly Pushing for a Maintenance Subsidiary... Labor Union Criticizes It

"Subcontracted Workers' Regular Employment Conversion Avoidance Tactics"

POSCO explains that the purpose of promoting a subsidiary is to establish a systematic maintenance system and highlight the importance of maintenance technology during the flood damage recovery process, but there are claims that it is actually a solution to resolve the issue of direct employment. The labor union opposes this, saying that the subsidiary is just another in-house subcontractor with a different name.

The Korean Metal Workers' Union (Metal Union) expressed opposition to POSCO's plan to establish a maintenance subsidiary on the 27th. They argue that in-house subcontracted (partner company) workers should be converted to regular employees, but POSCO is pushing for the establishment of a specialized maintenance subsidiary as a loophole to avoid this.

The POSCO in-house subcontractor branch won a final victory in a lawsuit confirming the status of illegal dispatched workers against POSCO in July last year and directly hired 55 members of the lawsuit group. Since then, union membership and lawsuits confirming worker status have increased. Currently, about 3,000 in-house subcontracted workers from Gwangyang and Pohang are participating in lawsuits confirming worker status.

The Metalworkers' Union held a press conference on the 27th in front of the headquarters of POSCO Gwangyang Steelworks, opposing the establishment of a maintenance subsidiary.
[Photo by Metalworkers' Union]

The union claimed that although POSCO promotes good quality jobs, it is just a superficial excuse. The union stated, "POSCO has not yet presented specific plans regarding the wages and welfare levels of maintenance subsidiary employees," and added, "It cannot be considered good quality jobs."

They also revealed that POSCO had promised to guarantee 70% of POSCO’s wages to companies spun off from large maintenance specialist divisions in the past, but this was not upheld and wages fell to about 50%. Furthermore, they claimed that even the in-house subcontracted workers directly hired following the Supreme Court ruling are paid the existing in-house subcontractor wages rather than the same wages as regular employees.

The union continued, "If these were truly good quality jobs, in-house subcontracted workers should be converted to regular employees according to the Supreme Court ruling, guaranteeing the same wage levels and welfare as existing regular employees."