Why is POSCO facing a possible first strike now?

The two sides have failed to narrow their differences since the seventh round of formal negotiations last Thursday. The union says its demands also reflect concerns over staffing shortages, long working hours, workplace safety and employee welfare.

What would the union’s planned walkout affect at POSCO plants?

If wage talks fail by midnight, the union says it will stop all production lines at the pickling plant at Gwangyang steelworks and at the 3ZRM cold rolling mill at POSCO’s electrical steel plant in Pohang for 48 hours. It also plans a second partial strike lasting 120 hours on Sept. 16 if the company does not improve its offer.

POSCO union warns of 1st strike as wage talks falter

Q: What are POSCO and its union negotiating over in the 2026 wage talks?

The union is demanding a 7.1 percent base wage increase, incentives equal to 600 percent of base pay, 50 shares through an employee stock ownership plan, and holiday bonuses worth 200 percent of base pay. POSCO has countered with a 2 percent wage increase and one-time payments plus expanded service anniversary bonuses.

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Summary

POSCO faces its first strike in its 58-year history as wage talks with its union remain deadlocked, with the union threatening a 48-hour partial walkout on Wednesday if no revised offer is made. The union also plans a second partial strike lasting 120 hours on Sept. 16 if talks stay stalled. POSCO and the union have not narrowed differences since their seventh round of formal negotiations last Thursday.

Key Facts

The union plans to halt all production lines at the pickling plant at the Gwangyang steelworks and at the 3ZRM cold rolling mill at the electrical steel plant in Pohang for 48 hours if it walks out on Wednesday.
Union chief Kim Seong-ho said at a rally outside POSCO’s office in Seoul that the union would strike as scheduled unless the company changes its attitude.
The union is seeking a 7.1 percent base wage increase, incentives equal to 600 percent of base pay, 50 shares through an employee stock ownership plan, and holiday bonuses worth 200 percent of base pay.
POSCO offered a 2 percent base wage increase, a 3.5 million won performance incentive, a 500,000 won local gift voucher, and an expansion of service anniversary bonuses.
POSCO said meeting all of the union’s demands would cost about 1.4 trillion won and cited weak global steel demand, excess supply from China, and higher tariff barriers as pressures on its business.

By Lee Gyu-lee

Published Sep 8, 2026 4:24 pm KST

POSCO's office in Seoul / Korea Times file

POSCO faces its first strike in its 58-year history as wage talks with its union remain deadlocked, with the latter threatening a 48-hour partial walkout on Wednesday if the steelmaker fails to present a revised wage offer.

The union said on Tuesday it would launch the strike on Wednesday if wage talks fail to reach a deal by midnight.

It plans to halt all production lines at the pickling plant at the company’s Gwangyang steelworks in Jeonnam-Gwangju Special Metropolitcan City and a 3ZRM cold rolling mill at its electrical steel plant in Pohang, North Gyeongsang Province for 48 hours.

The union said it would escalate the action with a second partial strike lasting 120 hours on Sept. 16 if the company fails to offer better terms.

"Unless the company changes its attitude, we will go on strike as scheduled," Kim Seong-ho, head of the union, said at Tuesday's rally outside POSCO’s office in Seoul.

The union is seeking a 7.1 percent increase in base wages, incentives equivalent to 600 percent of base pay, 50 shares through an employee stock ownership plan and holiday bonuses worth 200 percent of base pay.

The company, meanwhile, offered a 2 percent increase in base wages, a 3.5 million won ($2,600) performance incentive and a 500,000 won local gift voucher, amounting to 4 million won in one-time payments, as well as an expansion of the scope of service anniversary bonuses.

POSCO labor union members attend a mediation session on collective bargaining at the National Labor Relations Commission's office in Sejong, Aug. 18

The two sides have failed to narrow their differences since the seventh round of formal negotiations last Thursday.

POSCO CEO Lee Hee-geun met Kim at the union's office in Pohang on Monday, but the meeting failed to produce a breakthrough, according to the union.

The union said its demands were aimed not only at higher wages but also at addressing longstanding concerns over staffing shortages, long working hours, workplace safety and employee welfare.

Meanwhile, the company said it was continuing efforts to engage in dialogue with the union despite difficult business conditions. The company has estimated that meeting all of the union's demands would cost about 1.4 trillion won.

The steelmaker has cited weak global steel demand, excess supply from China and higher tariff barriers as factors weighing on its business.

“The company plans to continue communicating with employees, including the labor union, about the reality of the challenging business environment,” POSCO said.

“We will also do our utmost to establish an emergency response system to ensure that any industrial action does not affect major domestic and global industries, including automobiles, shipbuilding, construction and home appliances.”

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