Gwangyang Steelworks Establishes Maintenance Subsidiary to Sustain Community Coexistence

POSCO Gwangyang Steelworks announced that as it is promoting the establishment of a maintenance subsidiary, it will actively implement various measures to harmonize employee treatment with POSCO Group standards and maintain the delivery scale with existing partner companies to coexist with the local community.

Previously, POSCO recognized that the support of maintenance technology from partner companies played a key role in completing the flood recovery of Pohang Steelworks, which suffered unprecedented flooding damage from the cold stream overflow last year, in just 135 days?much faster than initially expected by the public.

Accordingly, POSCO will establish a dedicated maintenance subsidiary to systematically accumulate and operate maintenance technology and to systematize maintenance work.

A group of maintenance partner workers hung a banner near Gwangyang City Hall expressing their support for POSCO's establishment of a maintenance subsidiary company.
Photo by Gwangyang Steelworks

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Above all, at a time when social awareness of safety issues has changed from the past, the establishment of a maintenance subsidiary can also meet the social demand for improving corporate safety levels.

By directly employing partner company employees, more direct support can be provided to them to eliminate risk factors during maintenance work.

Various support measures for existing partner companies and local small businesses will also be intensified during the process of establishing the maintenance subsidiary.

Once the newly established maintenance subsidiary launches, it will continue to perform existing maintenance work, and Gwangyang Steelworks plans to maintain the delivery scale by thoroughly understanding the detailed transaction contents with partner companies so far.

For companies that do not wish to transition to the maintenance subsidiary, Gwangyang Steelworks plans to allow continued maintenance work through contract retention rather than contract termination, with a policy of no artificial reduction in contract volume.

Due to the systematic work and business expansion of the maintenance subsidiary, transactions with local small businesses are also expected to increase.

The treatment of maintenance subsidiary employees will also improve.

Gwangyang Steelworks plans to hire employees from existing partner companies who wish to join the maintenance subsidiary, provided there are no special disqualifications, and unify their salary and welfare levels with POSCO Group standards.

In fact, partner company employees preparing for subsidiary recruitment are also reported to have high expectations for improved treatment.

One partner company employee said, "If we transition to the maintenance subsidiary, the salary and welfare levels seem likely to improve significantly compared to now," adding, "Long-term stable work as regular employees will also be possible, so there is high anticipation for subsidiary recruitment among those around me."

A Gwangyang Steelworks official said, “We will prioritize coexistence with the local community in promoting the establishment of the maintenance subsidiary,” and added, “We will spare no support to ensure that local small businesses do not suffer disadvantages.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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