POSCO's regular-workers union, the Federation of Korean Metalworkers' Trade Unions (Korean Metal Workers' Federation) POSCO Labor Union (POSCO union), said on the 23rd that wage talks had broken down. The POSCO union plans to apply for mediation by the National Labor Relations Commission on the 27th.
Because the POSCO union has already approved industrial action through a vote of its members, if the National Labor Relations Commission decides to suspend mediation after starting the mediation process, the union will secure the right to strike and can launch a walkout. POSCO has maintained a no-strike tradition for 58 years since its founding in 1968.
POSCO labor and management held main talks that morning, but failed to find common ground on most items, including base pay increases and expanded benefits demanded by the union.
The POSCO union is demanding a 7.1% increase in base pay and a one-time payment equal to 600% of base pay, among other things. POSCO management, in its fourth proposal that day, suggested to the union that it would raise base pay by 1.2% if this year's target operating profit is achieved.
Kim Seong-ho, POSCO union Chairperson (chair of the strike countermeasures committee), said on a YouTube live broadcast after the talks ended that "the base pay raise presented in the management's final offer is effectively a wage freeze."
Chairperson Kim declared the breakdown of collective bargaining and said the union would apply for mediation to the National Labor Relations Commission.
A POSCO union official said, "We will give notice of mediation today and apply for mediation to the National Labor Relations Commission on the 27th."
Earlier, the POSCO union approved industrial action with a support rate of more than 92% in a strike-authorization vote on the 8th to 9th.
Therefore, if a decision is made to suspend mediation after the National Labor Relations Commission begins the mediation process, the union will secure the right to strike and be able to walk out.
Chairperson Kim said, "We will not hesitate to take collective action in accordance with legal procedures," while adding, "Even after applying for mediation to the National Labor Relations Commission, the door to talks remains open."
POSCO, responding to the union's declaration of a breakdown in talks, said that "given current business conditions, including low-priced competition from China, the spread of global protectionism, and the unprecedented triple burden of high oil prices, a strong won, and high interest rates, it is difficult to accept the union's demands." It also said, "We will do our best to reach a reasonable and amicable agreement and will prepare thoroughly to prevent labor-management disputes from affecting major industries at home and abroad, such as automobiles, shipbuilding, and home appliances."