POSCO wage deal rejected, raising prospect of prolonged labor dispute
POSCO is facing the prospect of a prolonged labor dispute after union members rejected a tentative wage agreement, leaving the steelmaker struggling to reach a deal following the first strike in its history. The company’s labor union on Sunday said its members had rejected the tentative wage agreement in a vote. Of the 9,177 ballots cast, 4,433 votes, or 48.31 percent, were in favor, while 4,744,…
POSCO has found itself in a potentially extended labor dispute following the rejection of a tentative wage agreement by union members. A vote held on Sunday revealed that 48.31% of the 9,177 ballots cast, amounting to 4,433 votes, were against the proposed agreement. The remaining 51.7% of the votes, totaling 4,744, were in favor.
This outcome has created uncertainty around the upcoming negotiations, as the union is likely to push for more favorable terms than those included in the rejected deal. However, it remains uncertain how much management will be willing to compromise, given the current downturn in the steel industry.
Wage negotiations between the two parties commenced on June 16 and comprised approximately 30 rounds of formal and informal discussions. Despite these efforts, the two sides were unable to reach an agreement on pay increases and other forms of compensation. Initially, the union had called for a 7.1% rise in base pay, a performance bonus equivalent to 600% of the base pay, 50 shares of company stock per employee, and a holiday bonus worth 200,000 won.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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