POSCO Labor and Management Agree on 2020 Wage Freeze

Decision to Maintain Employee Job Stability to Alleviate Employment Anxiety Due to Steel Industry Downturn
500,000 KRW Traditional Market Gift Certificates Provided to Encourage Employees and Revitalize Local Economy
Implementation of Policy Improve

[Gwangyang=Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] POSCO labor and management have agreed to freeze wages for 2020.

On the 31st, POSCO's representative labor union, the POSCO Labor Union, held a vote among its members on the "2020 Wage Agreement Company Proposal," which was approved with a 93.44% approval rate.

The approved company proposal includes, besides the wage freeze, △ job security, △ issuance of traditional market gift certificates worth 500,000 won, △ improvements to childbirth and childcare systems, and △ suspension of layoffs.

On August 11, the POSCO Labor Union held a delegates' meeting and decided to entrust this year's wage negotiations to the company to overcome the management crisis early amid the domestic and international economic crisis caused by COVID-19. The company prepared the "2020 Wage Agreement Proposal" on August 13 and delivered it to the union.

POSCO decided to freeze base wages but not to artificially adjust employment to alleviate employees' job insecurity caused by the management crisis due to COVID-19.

Additionally, to boost employee morale and revitalize the local economy, the company will provide traditional market gift certificates worth 500,000 won.

Furthermore, as part of efforts to address the low birthrate social issue, the first childbirth incentive was increased from 1 million won to 2 million won, and a new adoption support fund of 2 million won was established to improve social awareness of adoption and celebrate new family formation. The existing child scholarship, which supports children attending kindergartens, has been expanded to include children aged 1 to 3 attending daycare centers.

Moreover, although layoffs with 70% of average wages have been in effect since June, due to recent recovery in order volume and a decrease in the number of layoffs, and considering the hard work of employees at the forefront of overcoming the management crisis, layoffs will be suspended.

POSCO labor and management plan to hold a signing ceremony at the Pohang headquarters on the 1st of next month to conclude the 2020 wage agreement.

This content was produced with the assistance of AI translation services.