Assemblyman Seodongyong Expresses Concerns Over POSCO Specialized Subsidiary 추진

Published 03 Apr.2023 15:43(KST)

Need to Develop Local Win-Win Cooperation Plans

Labor Sector's Trickery Criticized, Clear Position Must Be Stated

National Assembly member Seo Dong-yong recently expressed concerns about POSCO's unilateral approach to the establishment of a maintenance subsidiary without sufficient consultation with the local community. He argued that a thorough review is necessary to determine whether POSCO's push to establish the subsidiary aligns with the Supreme Court's ruling last year regarding the confirmation of worker status.

Furthermore, although POSCO claims that the purpose of establishing the subsidiary is to accumulate maintenance technical skills, ensure systematic operations, and strengthen equipment management capabilities, Seo stated that POSCO must clearly address labor's criticism that the subsidiary is actually a tactic to avoid converting in-house subcontracted workers into regular POSCO employees.

[Photo by Seo Dong-yong's Office]

If the establishment of the maintenance subsidiary proceeds after the consolidation of partner companies, purchasing of general materials, raw materials, and construction equipment will be mandated through the e-commerce platform of N2B Group, a POSCO affiliate. This raises growing concerns that small local businesses that previously supplied partner companies will suffer significant damage to their competitiveness and the regional economy.

Despite the increasing confusion in the local community regarding POSCO's push to establish the maintenance subsidiary, POSCO has only issued unilateral notices to cease operations of existing companies within the deadline, without sharing any progress related to the project with the local community, which continues to be criticized.

Assemblyman Seo Dong-yong stated, “POSCO needs to adopt a more proactive attitude in communicating with the local community to devise win-win cooperation measures,” and urged, “POSCO should halt the unilateral push to establish the subsidiary and seek close cooperative relationships with local partner companies.”

He also said, “Efforts should be made to implement win-win cooperation measures for local companies, such as establishing a local purchasing department at POSCO, raising the threshold for negotiated contracts, easing entry barriers for local companies to register on N2B, and expanding N2B's regional restrictions, all of which have been consistently requested by partner companies in the Gwangyang area.”