POSCO Union Rejects Wage Deal with Re-strike Looming
POSCO’s labor and management reached the first tentative agreement following the first strike since the company’s foundation, but they are at the crossroads of a renewed strike due to the union’s opposition. With the possibility of a prolonged strike, attention is also drawn to the next POSCO Group
POSICO's labor force and management reached an initial agreement following a strike, but the union opposes the deal, which could lead to another strike. The potential for a prolonged dispute is causing concern in the steel industry. POSICO Group Chairman Chang In-hwa is expected to retain his position for the time being, but if the strike situation persists until the next election, it could impact the selection of the new chairman.
The union rejected the tentative agreement on Nov. 7, with 4,744 voting no to the proposal of a 2.6% basic salary increase and a lump sum payment of 6 million won. The steel industry was surprised by the rejection, as labor and management had reached the agreement after 30 rounds of negotiations. The union demanded a 7.1% increase, far more than the 2% offered by the company.
The union has stated that they will resume negotiations and labor disputes with the company, and mentioned their willingness to risk another strike. Despite the rejection of the initial agreement, POSICO and management are planning to negotiate again to create a second tentative agreement.
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