POSCO union to vote on tentative wage deal this week

Unionized workers at POSCO, South Korea's largest steelmaker, will cast ballots this week on a tentative wage deal reached with management, the union announced on Sunday. Negotiations between the two parties have been ongoing for 30 rounds since June, following two partial strikes in September that demanded higher wages and bonuses.

The union threatened to launch an indefinite strike starting November 2 if the company failed to present an acceptable wage offer by last week. On Friday, both sides agreed to a tentative agreement that includes a 2.6 percent raise in base pay, a one-time payment of 6 million won ($4,500), and enhanced benefits. Union members are set to vote on the proposal on Saturday.

Initially, the union had sought a 7.1 percent increase in base pay, a performance bonus equal to 600 percent of base pay, 50 company shares per worker, and a holiday bonus equal to 200 percent of base pay. Besides wage increases, the union highlighted staffing shortages and aging facilities as potential risks that could lead to workplace accidents. Management's earlier offer comprised a 2.5 percent increase.