POSCO Union Warns of Indefinite Strike After Wage Talks Fail

The union representing workers at South Korean steelmaker POSCO has issued a warning of an indefinite strike set to commence next week. This announcement follows the breakdown of wage talks that took place over the weekend.

Union spokesperson Park Chun-su stated that the strike will begin at 7 a.m. on November 2, affecting non-core production lines at the company's facilities in Pohang and Gwangyang, while excluding critical areas such as blast furnaces and steelmaking lines.

The union has expressed willingness to continue negotiations if POSCO presents any substantial new proposals prior to the strike's initiation. In response, POSCO has indicated plans to activate an emergency operational response system to mitigate production disruptions.

The union's demands include a 7.1% increase in base pay, a performance bonus of 600% of base pay, and additional benefits. Management's latest offer was a mere 2.5% pay increase along with a one-time payment of 5 million won.

This potential strike could significantly impact production and the wider South Korean economy, as POSCO employs around 17,000 workers, with over 10,000 being union members.