POSCO Labor and Management Reach Tentative Agreement on Wage Negotiations Including 100,000 KRW Basic Salary Increase

POSCO. Photo by Jinhyung Kang aymsdream@

POSCO labor and management have tentatively agreed on a wage and collective bargaining proposal that includes a basic salary increase of 100,000 KRW and stock payments worth 4 million KRW.

The Korea Federation of Trade Unions POSCO Labor Union (POSCO Union), the representative bargaining union among POSCO's multiple unions, decided on the 31st at the Central Labor Relations Commission (CLRC) mediation meeting to accept the company's proposed terms. The main points of the agreement include a basic wage increase of 100,000 KRW (approximately 170,000 KRW including natural increments), stock payments of 4 million KRW, a one-time payment of 2.5 million KRW (an emergency management participation incentive), regional gift certificates worth 500,000 KRW, introduction of a biweekly four-day work system, formation of a task force for the introduction of a performance-based pay system, job-based pay system, and redesign of welfare benefits.

POSCO labor and management held a total of 24 negotiation sessions from May 24, when the initial meeting took place, until October 5, but failed to reach an agreement. As differences in positions persisted, the union declared the breakdown of negotiations and subsequently applied for mediation at the Central Labor Relations Commission and conducted a strike vote among union members. If negotiations failed at the CLRC and a 'mediation suspension' decision was issued, the POSCO Union would have obtained the right to strike and could have initiated the first strike in the company's 55-year history since its founding in 1968. However, if a majority of union members approve the tentative agreement in the vote, POSCO labor and management will finalize this year's wage and collective bargaining negotiations.

A POSCO official stated, "Despite the difficult company conditions, we proposed a higher wage increase rate compared to previous years to promptly conclude the wage and collective bargaining negotiations," adding, "We hope the union member voting process on the tentative agreement will be completed smoothly."