Posted on 27 Nov 2024
POSCO, South Korea's largest steelmaker, is at risk of facing its first-ever strike after unionized workers voted overwhelmingly in favor of collective action on Monday, Mysteel Global learned from The Korea Times, a local media outlet managed by the state-backed Yonhap News Agency.
Of the 7,934 members of the steel giant's leading union affiliated with the Federation of Korean Trade Unions, 72.25% voted for a collective move, giving the workers the legal right to strike or reduce productivity at the workplace. The voting result marks a critical point in POSCO's labor dispute, which has been escalating amid worsening profitability in the steel market, Mysteel Global noted.
The vote followed a breakdown in wage negotiations between POSCO and its workers. The union has been demanding an 8.3% wage hike and bonuses equivalent to 300% of each employee's base salary, while the company management resisted these terms. Earlier attempts at mediation by the National Labor Relations Commission failed to resolve the deadlock, leading to the vote on the strike.
Adding to POSCO's challenges, the company has recently struggled with a series of fires at its flagship Pohang Works, which is crucial to its operations. A fire broke out on Sunday at the No. 3 Finex plant, just two weeks after a similar incident at the same plant, as reported. Though no casualties were reported, and the fire was quickly extinguished, the repeated incidents have raised concerns both within the company and the local community.
Despite these issues, industry observers expect the union to use the strike vote as leverage in the ongoing negotiations, rather than immediately taking action. The company has expressed its intent to continue talks to avoid a walkout, which, if happens, will be the first strike in POSCO's 56-year history.
Source:Mysteel Global
