POSCO Management and Labor Reach Provisional Agreement on 2025 Wage Talks... Early Resolution Without Dispute

Base Salary Increased by 110,000 Won, New PI System Introduced
Employee Stock Ownership Support, Unified Wage Structure
Early Agreement Reached After Averting Strike Crisis for Second Consecutive Year

POSCO management and labor have prepared a provisional agreement for the 2025 wage and collective bargaining agreement, which includes an increase of 110,000 won in base salary.

On September 6, POSCO and its main bargaining union, the POSCO Labor Union under the Federation of Korean Metalworkers' Trade Unions, announced that they had reached an agreement after negotiations held the previous day at the Pohang headquarters.

POSCO headquarters view. Provided by POSCO

The agreement includes a 110,000 won increase in base salary, a 2.5 million won contribution for strengthening steel competitiveness, a 4 million won employee stock ownership support payment to celebrate POSCO's selection as the world's top steelmaker by WSD for 15 consecutive years, and a 500,000 won local community gift certificate. Additionally, the agreement establishes a new performance-linked productivity incentive (PI) system, unifies the wage system that had previously varied depending on the date of joining, and expands the right to suspend work for safety reasons.

Since May, management and labor have held more than ten rounds of negotiations. While they reached common ground on the collective agreement, they were at an impasse regarding wage demands. Despite handling more agenda items than in previous years, reaching a provisional agreement early is seen as unusual. This is interpreted as a result of a shared sense of urgency between management and labor not to miss the "golden time" for strengthening competitiveness, especially as the government and National Assembly have begun supporting the steel industry, including the proposal of the "K-Steel Act."

Previously, on August 29, the POSCO union issued a statement in the name of Chairman Kim Seongho, urging the company to make a decision, saying, "We can no longer remain at the crossroads of coexistence and struggle." At that time, Chairman Kim stated, "If a proposal acceptable to union members is not presented by the 5th, we will have no other choice but to take action." However, with the company presenting a provisional agreement on this day, a crisis was avoided.

Since its founding in 1968, POSCO has been a strike-free workplace. However, in both last year's and the previous year's wage and collective bargaining negotiations, talks broke down and the union secured the right to strike, bringing the company to the brink of a walkout. Nevertheless, agreements were reached through mediation by the Central Labor Relations Commission and additional negotiations. POSCO stated, "Going forward, we will continue to prioritize creating a safe workplace based on mutual trust and will maintain ongoing communication to restore steel industry competitiveness and improve employee rights and interests."

The provisional agreement will be finalized through a union member vote next week. If a majority of union members approve, the wage and collective bargaining agreement will be concluded.