How POSCO’s Union is Shaping Korea’s Green Steel Future

How POSCO’s Union Became Korea’s Most Watched Labor Force

사진: DaddyAI / Pexels

POSCO’s labor union is Korea’s largest enterprise-level union, born in 1973 alongside the steel giant itself. Once hailed as a model of industrial peace, the union has spent decades balancing worker demands with corporate survival—especially as global competition tightened and environmental rules reshaped the industry.

📊 Key Moments in POSCO’s Union History

2020s: Green Steel, AI, and Global Factories

POSCO’s 2020 “2030 Green Vision” commits the company to carbon-neutral steel production. For workers, this means two urgent questions: Will green steel create new jobs—or replace existing ones? The union insists on safeguards: retraining funds, job-transition support, and equitable wages for overseas plants.

POSCO is also expanding abroad—Vietnam, Indonesia, the U.S.—where local unions have pushed back against wage gaps. In 2022, the Vietnamese affiliate’s union negotiated with headquarters over fair compensation standards, signaling a new chapter in cross-border labor coordination.

🔍 Union Demands for a Just Green Shift

• More R&D budgets for carbon-neutral steel tech
• Retraining programs before layoffs to prevent unemployment
• International wage benchmarks to close gaps at overseas sites

Rising Tensions: Wages vs. Survival Strategy

The union’s central fight is wage growth. After record profits in 2022, workers demanded raises tied to inflation—but POSCO limited increases to 3.5%, calling it a “survival strategy.” The standoff culminated in a five-day strike in 2023, crippling operations and knocking 5% off the company’s stock.

That same year, POSCO proposed converting some non-regular workers to regular status—but the union protested, arguing the scope was too narrow. The dispute ended only after government mediation raised the final wage deal to 4.2%.

💥 2023: The Year Industrial Peace Shattered

The Future: Fair Pay and Tripartite Dialogue?

POSCO’s struggles mirror Korea’s evolving labor landscape. The government’s 2024 reform plan pushes “performance-sharing” and “job-based pay”—moves that could reshape how unions negotiate. A new “green transition council” now brings government, union, and company reps together, though concrete results are still pending.

🔮 What’s Next for POSCO’s Union?

• Short term (2024–25): Wages likely to rise 4–5%, but green-job guarantees may stall
• Mid term (2026–30): AI and robotics will demand massive retraining programs
• Long term (2030+): POSCO must prove it can share green-tech profits fairly—or risk losing its workforce to rivals

❓ Your Questions Answered

Q1. Why does POSCO’s union fight every year over wages?

POSCO is one of Korea’s highest-paying firms, yet the union insists on raises that match inflation and rival companies. With prices climbing since 2020, workers fear real wage erosion—and they’re pushing back.

Q2. How does POSCO’s green push affect workers?

Green steel could shrink traditional jobs while creating new ones in clean tech. The union wants ironclad guarantees: no layoffs without retraining, and priority hiring for affected workers.

Q3. What happens to Korea’s economy when POSCO strikes?

POSCO contributes roughly 0.5% of Korea’s GDP. A strike disrupts steel supplies, delays exports, and punishes shareholders. During the 2023 walkout, the stock tanked 5% in days.

POSCO’s Union: The Bellwether for Korea’s Green Transition

POSCO’s labor story is no longer just about wages—it’s about survival in a carbon-neutral world. If the union, company, and government can turn endless conflict into cooperation, POSCO could become Korea’s flagship green steel champion. But if compromise fails, the cycle of strikes and losses may drag down the entire industry.

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Originally covered on Daily Trend Blog