POSCO Union Plans Indefinite Strike After Wage Talks Collapse

POSCO’s labor union has announced plans to begin an indefinite strike after the latest round of wage negotiations with South Korea’s largest steelmaker ended without an agreement. The planned action raises the prospect of wider disruption at a company that supplies steel to major domestic industries.

The POSCO labor union, affiliated with the Federation of Korean Metalworkers’ Trade Unions under the Federation of Korean Trade Unions, said the strike would start at 7 p.m. on November 2. It also said the action would expand in stages, indicating that the scale of work stoppages could grow if the dispute remains unresolved.

The union said management had not changed its position on key issues during negotiations, leaving the two sides unable to reach a settlement. POSCO and the union held wage talks on October 23 but failed to bridge the gap between their proposals. The union is also seeking to secure a compensation fund for the open-ended strike by collecting special dues from members who are not participating in the stoppage.

The two sides remain far apart on pay and benefits. The union has demanded a 7.1 percent increase in base wages, an incentive payment equal to 600 percent of a specified pay measure, 50 shares of company stock and a holiday bonus equal to 200 percent.

POSCO’s latest offer included a 2.5 percent increase in base wages and a one-time payment of 5 million won. The company also proposed a holiday bonus of 1 million won plus 10 percent, with the percentage component rising to 15 percent from 2028.

The dispute has already produced limited industrial action. The union carried out two partial strikes last month as wage bargaining became increasingly difficult. The newly announced indefinite strike would represent a significant escalation.

POSCO said it would adjust production plans and activate an emergency operating system if the union proceeds with industrial action. The company said the measures are intended to minimize production setbacks and reduce the impact on customers and Korean industries that rely on its steel products.

A company representative said POSCO would continue seeking dialogue despite the union’s declaration that negotiations had broken down. The company said it still aims to conclude the wage talks smoothly, leaving open the possibility of further negotiations before the strike deadline.