POSCO union to vote on tentative wage deal this week

Unionized employees at POSCO, a prominent South Korean steel manufacturer, will cast their votes this week on a preliminary wage agreement that was recently forged with their employer, according to the union. The two parties have engaged in 30 rounds of talks since June, during which the union organized two brief strikes in September, demanding higher wages and bonuses.

In a previous statement, the union announced its intention to launch a prolonged strike beginning November 2nd unless the company presented a satisfactory wage proposal. On Friday, the union reached a provisional agreement on the latest offer made by the company, which entails a 2.6 percent raise in base pay, a one-time payment of 6 million won ($4,500), and enhanced benefits. Union members are expected to vote on the proposed deal on Saturday.

Initially, the union had demanded a substantial 7.1 percent increase in base pay, a performance bonus equivalent to 600 percent of base pay, 50 company shares for each worker, and a holiday bonus equal to 200 percent of base pay. Apart from wage enhancements, the union highlighted staffing shortages and aging facilities as potential contributors to workplace accidents. Management's earlier proposal consisted of a 2.5 percent increase in base pay, a one-off bonus of 5 million won ($3,750), and improved working conditions.