Steel, shipbuilding labor tensions to flare up after holiday recess

Labor disagreements at leading steel and shipbuilding firms are poised to reignite following a short break during the Chuseok holiday, as unions push for increased wages and more performance-based incentives. POSCO, HD Hyundai Heavy Industries and Hanwha Ocean found themselves at a standstill with wage discussions, following their unions' strikes or threats of action over their demands. The potential for additional disruptions looms, especially at shipyards grappling with multi-year order backlogs.

At POSCO, negotiations are set to recommence after the company's union elected fresh leadership on October 2. The union staged a 48-hour partial strike earlier in the month, followed by another 120-hour partial strike that concluded on September 21. The two parties are at odds regarding the extent and arrangement of the pay package. The union is demanding a 7.1 percent raise in base salary, bonuses equivalent to 600 percent of the base pay, 50 shares in an employee stock ownership plan, and a 200 percent holiday bonus.