Is POSCO’s labor-management conflict prolonging? The rejection of the tentative agreement on wages and salaries

Concerns are growing that the labor-management conflict will prolong as the provisional wage negotiation agreement that POSCO's labor and management worked hard to reach failed to pass the threshold of union members voting for or against.

According to POSCO's labor and management on the 8th, the representative bargaining union, the Federation of Korean Trade Unions and the POSCO Labor Union, held a vote on the wage negotiation plan tentatively agreed upon with the company the previous day, with 4,433 votes (48.31%) in favor and 4,744 votes (51.69%) against.

As the majority voted against, the approval of the tentative agreement was rejected.

When the vote came back as a no vote, both the management and the union executives were unable to hide their embarrassment.

The union initially stuck to the 7.1% increase in basic salary in this year's wage negotiations, and the company proposed a 1.2% increase in basic salary when this year's target operating profit was achieved, then gradually increased the increase rate.

The company announced that it would be difficult to accept the union's demands as its operating profit in the first half of this year decreased by 43% compared to last year due to the recession in the steel industry.

The union countered, saying that even when business performance was good, the company had been demanding unilateral sacrifices and concessions from the union, and that it was difficult to accept a situation where POSCO Holdings was spending hundreds of billions of won on brand usage fees and rent.

The union went on strike last September for the first time since its founding in 1968 as wage negotiations with the company reached a deadlock.

When negotiations after two partial strikes failed to reach an agreement, the union announced a third strike.

As the union strike began to count down, several organizations and organizations in the Pohang area of ​​Gyeongsangbuk-do called for dialogue and compromise, and after holding last-minute tug-of-war negotiations, labor and management tentatively agreed to a wage agreement centered on a 2.6% increase in basic salary on the 30th of last month.

As the provisional agreement that was painstakingly prepared through this process was rejected in a vote by union members, there are concerns that the labor-management conflict could be prolonged.

When renegotiating, the union is expected to accept members' opinions and demand more conditions than the existing tentative agreement.

The problem is that it is unclear to what extent the management, which is complaining about the steel industry's recession, will be able to accommodate the union's demands.

If labor-management negotiations are prolonged or industrial action occurs again, it may have a negative impact not only on the company but also on the entire steel industry, including customers and partners.

Instability in the overall economy of Pohang, North Gyeongsang Province and Gwangyang, Gwangju, South Jeolla Province, where business sites are located, is bound to increase.

However, some say that the difference between the pros and cons in the union members' vote is not that large at 311 votes, so labor and management may be able to reach an agreement sooner rather than later.

A union official said, “Since the members said they are not satisfied with the tentative agreement, we have no choice but to accept it and begin renegotiation or continue industrial action.”

The company said, "Based on the philosophy of labor-management coexistence, we will continue sincere communication until the end to find an amicable agreement by deeply considering the management conditions and employees' emotions."