POSCO's management and labor union have entered the final negotiations for this year's wage and collective bargaining agreement. With the gap between the two sides remaining wide, POSCO CEO Lee Hee-keun has stepped in to lead the discussions, marking a critical turning point in the negotiations. The union has deemed this round of talks as essentially the last opportunity for dialogue, suggesting that the outcome will determine whether an agreement can be reached.
According to industry sources, CEO Lee Hee-keun and POSCO Labor Union Chairman Kim Sung-ho are scheduled to meet at 3:30 PM to discuss the collective bargaining agreement. The 28th round of negotiations, which began the previous afternoon, saw continued disagreements, prompting top management to intervene in search of a breakthrough.
On October 22, the two sides held the 28th round of negotiations at POSCO's headquarters in Pohang, starting at 4:32 PM. Management presented a final proposal that includes a 2.5% increase in base salary and a total bonus of 5 million won. The base salary increase amounts to approximately 83,000 won, with additional increments based on tenure and performance. The bonus consists of 3.5 million won as an incentive for achieving targets, 500,000 won in local gift certificates, and 1 million won as a celebration bonus.
Management also agreed to expand the holiday bonus. Starting from the 2027 Lunar New Year and Chuseok holidays, an additional 10% will be paid on top of the average 341,000 won, with a 15% increase proposed for 2028 and beyond. The percentage will be calculated based on performance bonuses.
However, the union has expressed that the management's final proposal is insufficient to gain the support of its members. They argue that appropriate compensation is necessary for the sacrifices made by union members in the name of enhancing the company's competitiveness and stabilizing management.
A key issue remains the motivation measures. Management has proposed a special wage adjustment equivalent to the first salary step for employees as of April 10. However, the union has stated that without additional motivation measures, resolving issues through dialogue will be challenging.
Union Vice Chairman Jo Yang-rae, in a negotiation update released the previous day, stated, "The proposal that emerged from lengthy practical negotiations is inadequate to gain the support of our members. We hope to reach a satisfactory agreement through dialogue between management and labor."
He added, "At the current level, we cannot adequately respond to the sacrifices made by our members or request them to take on greater roles in the future. The company must recognize the hard work of the workforce and make decisions to restore trust among union members."
As a result, the focus of the meeting between CEO Lee and the union chairman will be whether management can present an improved compensation plan. The extent to which they can narrow their differences regarding motivation measures is expected to be a key variable in reaching an agreement.
Given that the union views this round of negotiations as essentially the last opportunity for dialogue, there is a possibility that the contours of an agreement will emerge by the end of the day. However, even if both sides reach a final agreement, additional processes may be required within the union before the collective bargaining agreement is finalized.
If no consensus is reached during this direct negotiation involving top management, concerns about prolonged negotiations are likely to grow. With restoring trust between management and labor emerging as a major challenge, attention is focused on whether this meeting will serve as a turning point in resolving the conflict.
* This article has been translated by AI.
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