Posco union members reject wage agreement — Korea Herald

In South Korea, members of the union at steelmaker Posco rejected a preliminary agreement with management on wages for this year. A total of 51.69% of participants voted against the proposal, leaving the parties without an agreed decision after months of negotiations, Korea Herald reports.

What the agreement provided for

The company and the union reached a preliminary agreement on October 30 after a series of intensive negotiations. The package provided for a 2.6% increase in base pay, a one-time bonus of 6 million won — about $4,400 — and a three-step increase in the career advancement system.

Holiday payments of 2 million won and 20% of base pay were also proposed. The share of base pay was to be increased to 30% in 2028. The agreement included higher allowances for shift work, housing and maintenance, as well as expanded medical coverage.

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Negotiations had continued since June

The parties began wage negotiations on June 16 and held around 30 rounds of consultations. They failed to agree on key compensation terms, and the union held two partial strikes in September.

Before reaching the preliminary agreement, the union had threatened a third strike. A union representative said that because votes against prevailed, its leadership needs to prepare for new negotiations. Posco said management seeks to continue dialogue, taking into account current business conditions and employee sentiment, in order to reach an agreement acceptable to both sides.