SeAH Steel is on the brink of a strike for the first time in 14 years as labor and management have failed to narrow their differences over this year's wage and collective bargaining agreement. Following POSCO, the intensifying labor dispute at SeAH Steel is raising concerns of widespread strikes across the steel industry.
According to a report by Aju Economy on August 26, the SeAH Steel labor union submitted a request for labor dispute mediation to the Gwangju Regional Labor Relations Commission. The two sides have been negotiating this year's collective bargaining agreement but have not reached consensus on issues such as extending the retirement age and the wage peak system.
This year's negotiations have faced challenges from the outset, including the rejection of a tentative agreement by union members. The union presented its demands to management on May 22 and has held nine rounds of negotiations to reach a tentative agreement.
The tentative agreement reportedly included a 3.7% wage increase, comprising a 2.5% base wage increase and a 1.2% promotion increase, along with a 60% advance payment of performance bonuses and a 4 million won incentive payment. However, the union's demands for extending the retirement age to 65 and abolishing the wage peak system have not found common ground with management.
After the rejection of the tentative agreement, both sides attempted to renegotiate earlier this month but failed to resolve key issues, leading to the union's request for mediation.
Typically, mediation by the labor commission takes about 10 to 15 days. During this period, both sides will engage in additional negotiations under the commission's mediation, and if no agreement is reached, they plan to proceed with strike actions.
If the SeAH Steel union does go on strike, it will be the first such action since 2012. Following the POSCO union's decision to halt mediation and secure legal grounds for a strike, the escalation of labor disputes in the steel industry appears to be spreading.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.