- POSCO union’s partial strike enters second day
- Production remains unaffected amid replacement staffing
POSCO’s union continued its partial strike for a second day on Thursday, with no significant production disruption reported so far. However, the possibility of a longer walkout from 16 September could increase operational risks if wage negotiations remain stalled.
First partial strike since POSCO’s founding
The POSCO union, affiliated with the Korean Metal Workers’ Union, began a 48-hour partial strike at 7 a.m. on September 9, marking the company’s first partial strike since its establishment in 1968.
Local reports indicated participation from workers at POSCO’s Pohang and Gwangyang steelworks. Around 10,100 of POSCO’s approximately 17,000 employees are union members, with only around 1% participating in the initial walkout.
Production impact remains limited
POSCO has deployed replacement personnel at the affected production lines in Pohang and Gwangyang, allowing operations to continue without significant disruption to output.
However, the union has warned that it could expand the scale and duration of the strike if negotiations fail to make progress.
The union has announced plans for a 120-hour partial strike from September 16, increasing concerns over potential production and supply-chain disruptions if the walkout continues.
Wage negotiations deadlocked
Labour and management remain significantly divided over annual wage and collective bargaining negotiations. No formal negotiations have been held since the latest bargaining session on September 3.
The union is demanding a 7.1% increase in base pay, incentives equivalent to 600% of monthly wages, 50 POSCO shares and a holiday bonus equivalent to 200% of monthly wages.
Management has offered a 2% increase in base pay, a performance incentive of KRW 3.5 million and KRW 500,000 in local gift certificates.
Weak profitability adds pressure
POSCO has argued that meeting the union’s demands in full would place significant financial pressure on the company amid weak steel demand and declining profitability.
The company estimates the total cost of meeting the union’s demands at around KRW 1.4 trillion, equivalent to nearly 80% of its KRW 1.78 trillion profit recorded last year.
POSCO’s operating profit in H1 2026 fell 43.3% y-o-y to KRW 487.3 billion, reflecting the prolonged downturn in the steel sector, oversupply from China and weak domestic demand.
Market sentiment
The immediate impact of the strike on steel production remains limited due to the low participation rate and replacement staffing. However, market concerns could increase if the planned 120-hour strike begins, particularly if participation expands across key production facilities.
A prolonged disruption could tighten domestic steel availability and provide some support to prices, although weak downstream demand and subdued steel profitability may limit the extent of any market impact.
Outlook
The near-term focus remains on the outcome of wage negotiations and the scale of the planned September 16 walkout. A prolonged or expanded strike could pose risks to POSCO’s production and domestic steel supply, while a resumption of negotiations could help contain operational disruptions.
Note: This article is published as part of a content exchange agreement between JapanMetalDaily and BigMint.
Leave a Reply