The POSCO labor union on the 18th secured the legal right to strike after the National Labor Relations Commission (NLRC) decided to "suspend mediation" in the mediation process related to labor-management talks at POSCO.

Members of the Korean Confederation of Trade Unions Metal Workers' Federation POSCO Labor Union attend the final mediation meeting on collective bargaining at the National Labor Relations Commission in Sejong on the 18th. /Courtesy of Yonhap News

According to the POSCO union on the 18th, the NLRC held the third mediation meeting that day on the POSCO labor-management wage agreement and decided to "suspend mediation."

The NLRC held talks for about two hours that day but decided to suspend them, judging that the gap between labor and management remained wide.

Earlier, POSCO labor and management began the NLRC mediation phase with the first mediation meeting on the 3rd of this month. At the second mediation meeting on the 5th, the NLRC decided to extend mediation to narrow the differences between labor and management. Labor and management accepted the decision and extended the mediation date, leading to the third and final meeting that day, but they ultimately failed to find common ground.

With this decision, the union completed the procedures to secure the right to strike for a lawful industrial action. The union can stage a legal strike after going through the NLRC mediation process and a member vote on industrial action. Earlier, on the 9th of last month, the union approved a vote on industrial action related to collective bargaining with a 92.2% approval rate. If the union actually goes on strike, it would be the first case since POSCO was founded in 1968.

This year, POSCO labor and management have shown a large gap during the wage and collective bargaining process. The union is demanding a 7.1% increase in base pay, a lump-sum payment equal to 600% of base pay, and expansion of holiday bonuses, among 13 items. POSCO management proposed at the third mediation meeting that day a 1.5% increase in base pay and a 2.5 million won encouragement payment, among other measures.

In addition, labor-management conflict had deepened due to POSCO's decision to directly hire 7,000 employees of subcontractors. In response, the union formed an industrial action countermeasures committee system this year and has been pursuing this year's wage agreement.

A POSCO union official said, "The timing is yet to be decided, but we plan to prepare for a strike depending on the mediation outcome."

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