POSCO union announces indefinite strike
A labour dispute at the South Korean steelmaker could put production under pressure from November.
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The union at South Korean steelmaker POSCO plans to go on indefinite strike from 2 November. The announcement follows 28 rounds of negotiations over pay and allowances that failed to produce an agreement.
The strike is due to begin at 7.00pm local time on 2 November, the union said. Workers have already been taking phased action since Monday, including wearing protest vests and limiting responses to unexpected work outside regular working hours.
The union is seeking a 7.1 per cent increase in basic pay, a bonus worth 600 per cent of monthly wages, shares for employees and higher holiday allowances. According to Yonhap, POSCO offered a 2.5 per cent pay rise and a one-off payment of 5 million won, equivalent to approximately 3,770 dollars.
The dispute is escalating after workers held two partial strikes in September. According to Yonhap, these were the first strikes in POSCO’s 58-year history. Yonhap reported that the earlier action affected parts of steel plants in Pohang and Gwangyang, among others.
POSCO makes steel for the automotive industry, household appliances and shipbuilding, among other sectors. The company has said it will adjust its production plans and activate emergency measures if the strike goes ahead. How much production capacity actually goes offline will depend on the number of participants and the departments affected.
For European and Dutch companies, the possible impact on international steel flows is particularly relevant. However, the sources consulted report no concrete consequences for Dutch customers, prices or deliveries. The strike is therefore currently mainly a development in South Korean industry, with its international impact still uncertain.
One story, several perspectives
What is established
- Pay negotiations between POSCO and the union have broken down.
- The union has announced an indefinite strike from 2 November.
- The union and the company differ substantially over pay and allowances.
- The scale of any production losses is not yet known.
Left
Arguments An indefinite strike may be necessary to give workers a fair share of the proceeds of a large industrial company. The union must be able to exert sufficient pressure when negotiations consistently fail to produce results.
Values Collective bargaining power, workers’ rights and a fair distribution of economic value.
Consequences An agreement could improve pay and working conditions; prolonged disruption could at the same time affect workers, customers and the regional economy.
Centre
Arguments Both sides have an interest in swift mediation and a verifiable compromise. An independent procedure could help assess pay capacity, competitiveness and security of supply at the same time.
Values Continuity, proportionality and institutional dispute resolution.
Consequences A compromise would limit the economic damage, but could yield less for both sides than their original demands.
Right
Arguments A prolonged strike at a strategic producer could damage competitiveness and security of supply. Under this approach, POSCO should first protect its market position and control costs before meeting structural pay demands.
Values Corporate economic responsibility, continuity and international competitiveness.
Consequences Restraint on labour costs could protect production, but could prolong the dispute and increase pressure on workers.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key facts have been confirmed by Yonhap and a second public source. The possible consequences for European markets have deliberately been presented as uncertain.
- confirmed The POSCO union wants to strike indefinitely from 7.00pm on 2 November. — Yonhap gives the planned start time and indefinite duration. source
- confirmed The negotiations broke down after 28 rounds. — The Chosun Daily reports 28 rounds of negotiations. source
- confirmed The union is seeking a 7.1 per cent pay rise and a bonus worth 600 per cent of monthly wages. — These demands are set out in the Yonhap report. source
- confirmed POSCO offered a 2.5 per cent pay rise and a one-off payment of 5 million won. — Yonhap mentions both elements of the company’s proposal. source
- confirmed Workers held two partial strikes in September. — Yonhap reports two earlier partial strikes in September. source
- confirmed The consequences for Dutch companies have not yet been established. — The sources consulted report no concrete consequences in the Netherlands; the wording is limited to those sources. source
Editor's note
It is certain that the pay negotiations have failed and that the union wants to begin an indefinite strike from 2 November. The eventual scale of the strike and any consequences for European or Dutch companies remain uncertain.Sources
- Wage talks between POSCO, unionized workers break down — Yonhap News Agency
- POSCO Union Begins Indefinite Strike November 2 — The Chosun Daily
More on this in Dutch media
- RTL Nieuws — „posco staking”
- FD — „posco staking”
- AD — „posco staking”