Steel, shipbuilding labor tensions to flare up after holiday recess

Labor disputes are set to flare up after the Chuseok holiday recess in the steel and shipbuilding industries. Major companies such as POSCO, HD Hyundai Heavy Industries, and Hanwha Ocean are facing wage negotiations that have stalled or remained unresolved. Unions are pushing for higher wages and performance-based rewards, despite strong earnings and order backlogs.

POSCO's union, which recently elected new leadership, has staged two significant strikes in recent months, demanding a 7.1% pay increase, substantial bonuses, and other benefits. The company's counteroffer included a 2% pay hike, a smaller bonus, and fewer vacation vouchers. The union's stance is based on a desire for a larger share of profits rather than relying on one-time bonuses.

HD Hyundai Heavy Industries and Hanwha Ocean are also expected to resume talks after the holiday, with the unions demanding significant pay raises, increased bonuses, and a larger slice of the company's profits. A tentative agreement between Samsung Heavy Industries and its union before the holiday suggests a possible precedent for resolving the ongoing disputes.