Labor-management conflict is deepening over POSCO's decision, released last month, to directly hire about 7,000 partner-company workers.
According to the steel industry on the 4th, the POSCO union is reviewing securing the right to strike in connection with the recent decision to directly hire partner-company workers. The union sees the company's decision as a management decision that affects working conditions and is said to be preparing to apply for mediation with the National Labor Relations Commission and to hold a strike authorization vote.
POSCO earlier announced on the 8th last month that it would directly hire about 7,000 partner-company employees. It is interpreted as a move to reduce management uncertainty by wrapping up the worker status confirmation (illegal dispatch) lawsuit that in-house subcontracted workers filed in 2011 and that has dragged on for 15 years to date.
The union has pushed back against the company's decision, including by forming an emergency committee on direct employment. It says there is a significant risk that the unilateral decision to directly hire partner-company employees without communication will cause existing employees' treatment and welfare to backslide.
The union is demanding from management: ▲ an apology from POSCO Holdings for causing on-site confusion ▲ the establishment of a rational employment system tailored to duties and worksites ▲ measures to prevent regression in welfare and infrastructure levels ▲ and a plan to compensate existing employees.
On the 22nd and 23rd last month, the union held rallies at the Gwangyang and Pohang steelworks with about 4,500 members attending and urged acceptance of its demands. In addition, POSCO union leader Kim Seong-ho met with POSCO Group Chairman Chang In-hwa on the 27th last month to press for the fulfillment of the demands and the preparation of countermeasures.
However, on the 24th last month, POSCO began the hiring process by issuing a special recruitment notice to partner companies for the POSCO operations-synergy job group. It also created a separate job group in addition to the existing P (management/engineer), R (research), and E (production technology) groups. The wages of special-recruitment hires were set at 70% of existing regular employees' wages.
An increase in expense is also inevitable with the direct hiring of partner-company employees. POSCO Holdings, releasing its first-quarter results, said, "With the hiring of partner-company employees, labor costs and welfare expenditure may increase."