Posco labor talks fail again despite sweetened offer of 2.5% pay rise, W5m bonus

Posco's management and union spent nearly four hours at the negotiating table but again failed to reach a tentative wage agreement. Management put forward a final offer raising the base pay increase to 2.5 percent and the lump-sum payment to 5 million won ($3,770), but the union said the proposal still did not go far enough to win members' support.

The two sides held their 28th round of main bargaining at Posco's Pohang headquarters Thursday, from 4 p.m. to 8 p.m. They returned to the table eight days after talks broke down on Oct. 14, but were unable to fully close the gap on key sticking points.

The union sent nine bargaining committee members, including Senior Vice Chairman Jo Yang-rae, along with one secretary. Management fielded eight committee members, including labor relations chief Jeong Tae-hyeong, and one secretary.

Management stepped up its offer by one notch from its previous position. The base pay increase was raised 0.3 percentage points to 2.5 percent from 2.2 percent, equivalent to an average monthly increase of 83,000 won — about 10,000 won more than the prior offer. Seniority- and performance-based pay increments would be applied separately.

The total lump-sum payment was also raised by 500,000 won, from 4.5 million to 5 million won. The package consists of a 3.5 million won performance incentive, a 500,000 won local gift certificate and a 1 million won settlement bonus — double the 500,000 won settlement bonus in the previous offer.

Management also maintained its earlier proposal for a special pay adjustment equivalent to one pay grade step as a morale-boosting measure. Employees on a pay-grade scale would move up one step, while those on annual salary contracts would receive a monthly base pay increase of 26,210 won, the average value of one step.

Holiday bonuses were also sweetened. Starting next year, management proposed adding 10 percent of performance pay on top of the existing 1 million won Lunar New Year and chuseok bonuses, with the additional rate rising to 15 percent from 2028. The average additional payments would amount to 341,000 won and 511,000 won, respectively.

Medical benefit coverage was expanded as well. The plan would extend eligibility from employees alone to spouses and children covered as dependents under national health insurance, covering 90 percent of medical and prescription costs exceeding 15,000 won per visit. The combined annual cap for an employee, spouse and children would be 50 million won, and claims would be allowed to overlap with personal indemnity insurance.

On fertility treatment support, management proposed covering essential high-frequency, high-cost non-reimbursed items and removing the lifetime limit on the number of treatments covered while employed, with up to 1 million won in actual expenses per treatment. Support for children with disabilities would also be broadened to cover those aged 18 or under with either severe or mild disabilities, with up to 2 million won per year available for special education and treatment costs.

Meanwhile, several items management had previously offered were dropped from the final proposal, including promotion bonus points for degrees earned after joining the company, expanded departmental commendations, accelerated special promotions and higher long-service anniversary bonuses.

The union acknowledged that extended working-level talks had narrowed some differences, but said it could not accept the final offer.

"This proposal, which emerged from lengthy working-level negotiations that narrowed the issues, still falls short of winning members' genuine support," Senior Vice Chairman Jo said. "At this level, we can neither answer for the sacrifices our members have endured nor ask them to take on an even greater role going forward."

"Overcoming the challenges facing Posco will require the more active support and participation of our members," Jo added. "How the company recognizes the hard work on the ground and what it offers in return for the sacrifices made will determine how our members feel."

To break the deadlock, management proposed that the top leaders of both sides meet directly on Friday. The union said it would inform management of its decision after internal deliberations. If the meeting takes place, it is expected to be the decisive moment in what has become a protracted wage dispute.

The union had already staged two rounds of partial strikes over the stalled negotiations — a 48-hour walkout and a 120-hour walkout in September. Bargaining and strike action were then suspended during a union leadership election, but resumed after Chairman Kim Seong-ho won a third term and reconstituted the labor dispute committee.

The union has signaled it could escalate action, including a third partial strike, if talks collapse again without a meaningful new offer. With the latest final proposal also failing to produce a tentative agreement, the outcome of Friday's top-level meeting is seen as likely to determine whether the dispute ends in a settlement or triggers further industrial action.