South Korean steelmaker POSCO faces its first potential strike since its 1968 founding after the union resolved to refuse overtime starting September 1 and stage a 48-hour partial strike across plants in Gwangyang and Pohang on September 9.
The standoff stems from a wide gap in wage demands, with the union seeking a 7.1% base salary increase, a 600% bonus, and employee stock, contrasted against management’s offer of a 1.5% raise and a 2.5 million won incentive. Having secured legal strike rights after mediation suspension, the labor dispute threatens the company’s 58-year record of peaceful negotiations.
A prolonged stoppage threatens manufacturing operations, posing a significant production burden as the steel industry battles oversupply pressures, global protectionism, and a domestic construction slump. POSCO has activated an emergency response system while aiming for a last-minute agreement.