Alphabiz - POSCO Moves to Directly Hire 7,000 Contractors, Raising Labor Integration Challenges

Headquarters of POSCO International in Songdo, Incheon. (Photo=POSCO International)

[Alpha Biz= Kim Jisun] POSCO has announced plans to directly hire approximately 7,000 contractor workers, marking a significant shift in its labor structure and drawing attention to implementation details and potential workplace integration challenges.

On April 8, POSCO stated that it will proceed with the direct employment of workers currently supporting operations at its Pohang and Gwangyang steelworks. The company is now preparing specific execution plans, including hiring processes and timelines.

The targeted workforce represents nearly 70% of POSCO’s total contractor workforce of around 10,000 employees, signaling a major step toward restructuring its subcontracting system.

POSCO plans to prioritize on-site workers directly involved in production support—such as raw material handling and product processing—for gradual hiring, based on individual willingness to join the company. Administrative and support staff from partner firms are likely to be excluded unless they transition into production-related roles.

The move follows earlier steps in which POSCO absorbed approximately 5,000 maintenance workers into affiliated subsidiaries.

Industry observers note that aligning compensation and benefits between newly hired employees and existing staff could become a key challenge, with the potential for internal conflict.

POSCO’s criteria are also influenced by legal precedents. In 2022, South Korea’s Supreme Court ruled in favor of contractor workers in a long-running lawsuit, recognizing their status as employees due to their direct involvement in core production processes.

Additional rulings in similar cases are expected in the coming weeks, which could further shape the company’s employment policies.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)