POSCO./Courtesy of

POSCO is now in a position where it must hold separate talks with at least three subcontractor unions. That follows a labor commission decision recognizing the separation of bargaining units among the subcontractor unions.

The North Gyeongsang Regional Labor Relations Commission said on the 8th that it recognized POSCO as the employer in cases involving the Korean Metal Workers' Union and the Korea Plant Construction Workers' Union, and accepted their applications to separate the bargaining units.

Accordingly, POSCO must negotiate separately with at least three subcontractor unions, including the Federation of Korean Metalworkers' Trade Unions under the Federation of Korean Trade Unions, the Korean Metal Workers' Union under the Korean Confederation of Trade Unions (KCTU), and the Korea Plant Construction Workers' Union.

Earlier, on the 10th, when the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, took effect, the Federation of Korean Metalworkers' Trade Unions under the Federation of Korean Trade Unions demanded collective bargaining with POSCO. In response, other subcontractor unions—the Korean Metal Workers' Union under the Korean Confederation of Trade Unions (KCTU) and the Plant Union—each applied to separate the bargaining units.

The commission said, "The Federation of Korean Trade Unions and the Korean Confederation of Trade Unions (KCTU) may face conflicts, including disputes between unions, and it is also difficult in terms of institutional sector of interest representation." It separated the bargaining unit with the Plant Union in consideration of differences in characteristics, work methods, and the nature of work.

Previously, the government's principle was to separate bargaining between primary-contractor unions and subcontractor unions, while unifying the bargaining channel among subcontractor unions. However, depending on job duties, affiliation, or the characteristics of corporations, the Labor Relations Commission allowed exceptions for separation when it deemed it necessary.

With this decision, each subcontractor union's bargaining unit is recognized separately. If POSCO accepts this, it will announce the bargaining demand, recruit additional participating unions for seven days, and then proceed to finalize the bargaining units.

※ This article has been translated by AI. Share your feedback here.