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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] POSCO has averted its first strike in 56 years as the labor union and management reached a tentative wage agreement on the 17th.
The Korean Confederation of Trade Unions-affiliated POSCO Labor Union, the company's main bargaining union, reached a consensus with management after continued negotiations.
The tentative agreement includes a 100,000 KRW base salary increase, a 3 million KRW incentive for achieving business goals, an additional 3 million KRW union harmony incentive, improved scholarship support for employees' children, increased childbirth incentives, and higher holiday bonuses.
The agreement will be finalized if a majority of union members vote in favor during the upcoming approval vote.
The steel industry currently faces challenging business conditions due to low-cost steel imports from China and Japan.
Nevertheless, POSCO's labor union and management agreed on the importance of boosting employee morale and compensation to rebuild competitiveness and improve profitability.
Negotiations began on June 27th, but the two sides failed to reach an agreement. After mediation efforts by the Central Labor Relations Committee failed, the union secured the right to strike through a member vote.
As a result, strike rallies were held in Pohang and Gwangyang on the 2nd and 3rd of this month. The union had also planned a rally at the POSCO Center in Seoul on the 19th.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
