Posco labor talks collapse, raising specter of first-ever strike

Posco's labor and management failed to narrow their differences at a final mediation session before the National Labor Relations Commission, leaving the steelmaker facing the prospect of its first strike since its founding in 1968.

According to both sides Tuesday, the commission suspended mediation after the two parties were unable to bridge their gap during the final session over the 2026 wage negotiations.

With mediation suspended, the Posco union has legally secured the right to strike. Should it act on that right, it would mark the first work stoppage in the company's history.

The union had earlier passed a strike authorization vote on July 8 and 9, with 92.2 percent of members voting in favor.

However, the union said it would not immediately launch a strike and would continue talks with management. A similar situation unfolded in 2024, when the union secured strike authorization but ultimately reached a settlement through negotiations.

This year, the union is demanding roughly double what it sought last year. Its specific demands include a 7.1 percent basic wage increase, a 600 percent incentive bonus, 50 shares of employee stock ownership, application of five years of automatic pay progression and a 200 percent holiday bonus.

Posco, for its part, has offered a 1.5 percent basic wage increase with no performance conditions attached, an incentive payment of 2.5 million won ($1,770), an annual holiday bonus of 2 million won and an additional 300,000 won in welfare points.

"We plan to continue communicating with the union and all employees about the difficult business environment we face," Posco said, adding that it would establish an emergency response system to ensure that any industrial action does not disrupt key domestic and international industries, including automotive, shipbuilding, construction and home appliances.