Wage talks between POSCO, unionised workers break down
Seoul, Oct 24
Wage negotiations between POSCO and its unionised workers have collapsed, the steelmaker's union said on Saturday, warning it would go on an indefinite strike from early next month.
POSCO and the union had been in negotiations over wages, but the two sides came unstuck over wage increases and other issues.
The union said it will begin an indefinite strike from 7 p.m. on November 2, reports Yonhap news agency.
The union had demanded a 7.1 percent increase in basic salary and a bonus worth 600 percent of basic salary. However, POSCO had offered a 2.5 percent increase in basic pay and a one-off payment of five million won (US$3,770).
Last month, unionised workers at POSCO held two rounds of partial strike after failing to narrow differences in wage negotiations.
In September this year, unionised workers at South Korean steelmaker POSCO began a second partial strike after failing to narrow differences with management in wage negotiations.
POSCO has about 17,000 employees, including around 10,100 union members.
The union said the second strike would cause inevitable disruptions as about twice as many workers participated compared with the first strike.
POSCO said, however, that there would be no major disruption to plant operations, with about 60 workers each from its Pohang and Gwangyang plants expected to join the strike.
The union has demanded a 7.1 percent increase in base pay, a performance bonus equivalent to 600 percent of base pay, 50 company shares per worker and a holiday bonus equivalent to 200 percent of base pay.
In addition to wage increases, the union has cited staffing shortages and aging facilities as factors that could lead to safety incidents.
Management, meanwhile, has proposed a 2 percent increase in base pay, leaving the two sides far apart over their key wage demands.
— IANS
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