Posco union votes down tentative wage agreement

Posco union has voted down a tentative wage agreement reached with management for this year, leaving both sides in a stalemate in the monthslong negotiations.

Posco labor union -- affiliated with the Federation of Korean Metalworkers’ Unions under the Federation of Korean Trade Unions -- said Saturday that the proposal was rejected in a union vote, with 51.69 percent voting against it.

Labor and management had reached the tentative deal on Oct. 30 following a series of intense talks.

The proposed package features a 2.6 percent base pay hike, a 6-million-won ($4,400) lump-sum bonus and a three-step promotion increase. It also includes holiday bonuses of 2 million won plus 20 percent of base pay -- rising to 30 percent in 2028 -- alongside higher allowances for shifts, residency and maintenance, as well as expanded medical coverage.

The two parties began wage negotiations on June 16 and held roughly 30 rounds of bargaining sessions but failed to bridge their differences over key compensation terms. As negotiations stalled, the union staged two partial strikes in September.

With the union threatening a third walkout, the two sides reached a last-minute tentative deal on Oct. 30, but union members subsequently rejected the agreement in a vote.

A union official noted that given the majority opposition, labor leadership will need to prepare for renegotiations.

A Posco official stated, “Management remains committed to pursuing sincere dialogue, taking into deep consideration both current business conditions and employee sentiment to reach a mutually agreeable settlement based on the principle of labor-management co-prosperity.”