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[Alpha Biz=(Chicago) Reporter Kim Jisun] This year's wage and collective agreement negotiations between POSCO's labor and management broke down again.
According to industry sources, POSCO's labor and management held their 24th main negotiations until the night before, but failed to narrow their differences.
During the negotiations, POSCO offered the union an average 5.4 percent increase in basic-level employees (increase of 162,000 won) and a lump sum payment of 6 million won (4 million won in shares, 1.5 million won in cash and 500,000 won in gift certificates for local love) as the final draft, but the union refused to accept the proposal. In addition, POSCO proposed △ immediately the introduction of the four-day workweek system every other week △ the improvement of the management incentive system including the establishment of the △PI (Productivity Incentive) system △ the introduction of a job pay system △ the formation of a labor-management joint TF (Task Force) related to the improvement of the job benefits system.
It is reported that the union is demanding 23 wage issues, including △ 13.1% increase in basic salary △ payment of 100 shares of treasury shares to union members △ establishment of 200% bonus △ support for members' cultural event expenses of 2 billion won.
According to POSCO, the additional cost of accepting all of the union's demands totaled 1.6 trillion won, exceeding 70 percent of the total annual labor cost. This is about 95 million won per person. On top of that, POSCO stressed that its average annual salary for its employees is 108 million won, the highest in its kind of industry.
Following the breakdown of negotiations, the union will apply for mediation with the National Labor Relations Commission and vote for and against the dispute. If the union secures the right to strike and goes on strike, it will be the first strike in 55 years since POSCO's establishment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
