POSCO union to vote on tentative wage deal this week
POSCO logo / Korea Times file
Unionized workers at South Korean steelmaker POSCO will vote this week on a tentative wage agreement reached with management, the union said Sunday.
The two sides have held 30 rounds of negotiations since June, while the union staged two partial strikes in September to demand higher wages and bonuses.
Last week, the union said it would launch an "indefinite" strike from Nov. 2 unless the company presented an acceptable wage offer.
On Friday, the union reached a tentative agreement on the company's latest offer, which includes a 2.6 percent increase in base pay, a one-off payment of 6 million won ($4,500) and improved benefits. Union members are scheduled to vote on the deal on Saturday.
The union had initially demanded a 7.1 percent increase in base pay, a performance bonus equivalent to 600 percent of base pay, 50 company shares per worker and a holiday bonus equivalent to 200 percent of base pay.
In addition to higher wages, the union cited staffing shortages and aging facilities as factors that could heighten the risk of workplace accidents.
Management's previous offer included a 2.5 percent increase in base pay and a one-off payment of 5 million won.