POSCO Union Sets November 2 Strike as Pay Talks Fail Despite Improved Offer

Walkout set for 7 p.m. after bargaining breaks down

POSCO's union has announced an indefinite strike beginning at 7 p.m. on November 2, 2026, after wage negotiations at the South Korean steelmaker failed to bridge a gap between workers demanding a 7.1% increase in basic pay and management offering 2.5%.

The union announced the breakdown on October 24 following negotiations at POSCO's headquarters in Pohang. Its planned third round of industrial action would combine an indefinite walkout with a gradual expansion of strike activity, following two partial stoppages at the Pohang and Gwangyang steelworks in September.

POSCO President Lee Hee-keun and union chairman Kim Sung-ho took part in efforts to secure an agreement. Management had increased both its proposed pay rise and its payment upon settlement, but the union said the package still fell short of what members would accept.

The dispute extends beyond the headline salary figures. Workers are seeking substantial bonuses and company shares, while management has proposed changes to holiday payments, medical coverage and family benefits. The union has also raised staffing shortages and ageing equipment as safety concerns.

POSCO says it will continue negotiations, adjust production schedules and activate an emergency operations system to limit disruption to customers. The immediate timetable includes restrictions on some work outside regular hours from October 26 and preparations for a fund to compensate striking workers.

What separates the two pay packages?

The union wants a 7.1% increase in basic pay, an encouragement bonus equal to 600% of basic pay, 50 company shares per worker and a holiday bonus of 200% of basic pay. A bonus of 600% means six times the basic pay amount used to calculate that benefit.

Management's latest widely detailed proposal offers a 2.5% basic pay increase and a payment of 5 million won, approximately US$3,770. The difference between the two proposed salary increases is 4.6 percentage points. Basic pay matters because a permanent increase continues into future pay periods, while a single payment is received once.

POSCO raised its salary offer from 2.2% to 2.5% and increased the proposed payment from 4.5 million won to 5 million won. The revised basic pay offer would add an average of about 83,000 won a month, roughly 10,000 won more than the previous proposal, with seniority and performance increments applied separately.

A 2% management offer was also cited in an account of the dispute, while the detailed bargaining descriptions put the revised proposal at 2.5%. The 5 million won payment comprises a 3.5 million won performance incentive, 500,000 won in local gift certificates and a 1 million won settlement bonus. The settlement component had previously been 500,000 won.

Why the improved offer failed to win agreement

Union negotiators acknowledged that discussions had narrowed some differences. Their objection was that the final package still failed to match members' expectations after a prolonged dispute.

Jo Yang-rae, the union's senior vice chairman, explained why the bargaining team could not recommend the proposal to workers:

This proposal, which emerged from lengthy working-level negotiations that narrowed the issues, still falls short of winning members' genuine support.

Jo also connected compensation with the contribution management expects employees to make:

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.

Kim Sung-ho, the union chairman, told members that a decision to stop the planned strike would depend on reviewing management's offer. His position leaves a route to settlement through a revised package, even as the union prepares for action without a fixed end date.

Holiday payments and family benefits are also at stake

POSCO's proposed holiday package combines a fixed payment of 1 million won with an additional percentage payment, initially 10% and rising to 15% from 2028. Detailed descriptions put the average additional amounts at about 341,000 won and 511,000 won, respectively. The union is seeking a holiday bonus equal to 200% of basic pay.

Management also proposed a special salary adjustment equivalent to moving up one pay grade. Employees on annual salary contracts would receive a monthly basic pay increase of 26,210 won, described as the average value of that step.

Medical support would extend from employees to spouses and children registered as dependants under national health insurance. The proposal would cover 90% of eligible medical and prescription costs above 15,000 won per visit, with a combined annual family limit of 50 million won. Claims could overlap with personal indemnity insurance.

Other proposed benefits include up to 1 million won in eligible expenses per fertility treatment, with the lifetime limit on the number of treatments removed during employment. Support for children with disabilities would expand to those aged 18 or younger with severe or mild disabilities, providing up to 2 million won annually for special education and treatment.

Several earlier management proposals were dropped, including promotion points for qualifications earned after joining POSCO, expanded departmental commendations, faster special promotions and higher bonuses for long service anniversaries. The negotiations therefore involve changes across the compensation package, rather than a salary percentage alone.

How the dispute reached the November deadline

September's partial strikes affected selected production lines at both Pohang and Gwangyang. The first lasted 48 hours and the second 120 hours, making the second stoppage two and a half times as long as the first.

Bargaining and strike action were later paused during a union leadership election. Kim won a third term, and negotiations resumed in October. By the latest breakdown, the two sides had reached their 28th main bargaining round.

• September 9 to 11: Workers held a partial strike lasting 48 hours at selected lines in Pohang and Gwangyang.
• September 16 to 21: A second partial strike lasted 120 hours.
• October 14: Wage negotiations resumed after a pause.
• October 22 to 23: Intensive negotiations and efforts involving senior leaders failed to produce an agreement.
• October 24: The union announced the breakdown and confirmed plans for an indefinite strike.
• October 26, 7 a.m.: Union clothing instructions and restrictions on designated work outside regular hours are scheduled to begin.
• Before October 30: The union plans to convene a committee to discuss compensation for wages lost during strike action.
• November 2, 7 p.m.: The indefinite strike and gradual expansion of industrial action are scheduled to start.

The detailed bargaining accounts place the improved offer and a session lasting about four hours on October 22 or October 23. Both dates fall within the final stretch of negotiations before the strike announcement.

Action begins before the main walkout

October 26 is the first operational deadline. From 7 a.m., union members are instructed to wear union vests in offices and cafeterias, while considering heat, dust and other safety risks when working on production sites.

At the same time, designated members will stop responding to unexpected work requests after their regular hours. The instruction covers selected employees in hot rolling, cold rolling, electrical steel and equipment technology departments at the Pohang and Gwangyang works. Some personnel are excluded, and affected members are to receive individual notification.

Hot rolling shapes steel while it is heated; cold rolling further processes steel at lower temperatures to achieve particular dimensions and finishes. Electrical steel is used in equipment such as motors and transformers. Restrictions across these departments could affect several stages of production and maintenance.

The union's instructions include a procedure for emergencies involving life or safety. Members are to notify the strike committee immediately and respond according to its decision. The union has separately cited insufficient staffing and ageing facilities as risks, adding workplace concerns to the disagreement over compensation.

Union prepares financial support for a longer strike

The union plans to discuss compensation aimed at covering wages lost by participating workers. Its operating committee is due to meet before October 30 to consider the standards and arrangements.

Special dues from members who are not taking part in the strike are also being considered. The union is preparing a general meeting to pursue that funding plan. Collecting contributions from members who continue working would help finance payments to those who lose wages through industrial action.

POSCO employs approximately 17,000 people, including about 10,100 union members. Those figures put union membership at roughly 59% of the workforce. Participation in a particular walkout depends on which members and departments are called out.

The second September stoppage reportedly attracted around twice as many participants as the first. An indefinite strike would place a different financial burden on participating households because it has no scheduled finishing date. The compensation arrangements will therefore matter to workers deciding how long they can remain away from their jobs.

Production impact depends on participation and departments

POSCO has said it expects limited disruption and has estimated participation at around 60 workers from each of the Pohang and Gwangyang plants. The union expects disruption as its action expands. Actual participation in the November strike, the lines affected and the amount of production maintained have yet to be established.

Management plans to adjust production schedules and use an emergency operations system to protect deliveries to customer companies and industries in South Korea. Its stated position is to continue dialogue while preparing to operate through industrial action.

Automakers, shipbuilders and construction businesses depend on steel arriving in the required grades and on schedule. For those customers, the practical issue is which products remain available and whether delivery dates change. A restriction affecting equipment support or a particular finishing line can have a different effect from a walkout elsewhere in a steelworks.

The planned gradual expansion also means the scale of the dispute could change after November 2. POSCO's contingency arrangements and the union's decisions about which departments join will shape the effect on production and customer deliveries.

Improving earnings form the financial backdrop

FnGuide's forecast for POSCO Holdings puts consolidated revenue for the third quarter of 2026 at 18.6394 trillion won and operating profit at 812.7 billion won. Those figures represent projected increases of approximately 8% and 27%, respectively, from a year earlier.

The forecast reflects increased steel sales and higher prices for automotive steel sheets and thick plate used in shipbuilding. Product selling prices were expected to rise faster than raw material input costs, improving the amount earned from sales after operating expenses.

Operating profit is the money left from business operations after operating costs, before items such as financing costs and tax. Using the forecast figures, operating profit would equal about 4.4% of revenue. The earnings figures cover the consolidated POSCO Holdings group, while the wage negotiations concern employees at steelmaker POSCO.

The projected recovery gives the negotiations a concrete financial backdrop: workers are seeking a larger permanent salary increase and substantial additional compensation as steel profitability improves. Management has responded with a smaller salary increase, a larger settlement payment and expanded benefits.

The next announced steps are the October 26 work restrictions, the union's compensation discussions before October 30 and the November 2 strike deadline. POSCO says talks will continue, while the union says its decision on stopping the planned action will depend on management's proposal.

Key Points

• The POSCO union plans an indefinite strike from 7 p.m. on November 2, 2026, with industrial action expanding in stages.
• Workers seek a 7.1% basic pay increase, a 600% encouragement bonus, 50 company shares each and a 200% holiday bonus.
• Management's detailed revised package offers a 2.5% basic pay increase, a payment of 5 million won and expanded benefits.
• Restrictions on designated work outside regular hours are scheduled to begin on October 26.
• The union is preparing compensation arrangements and considering special dues to support striking members.
• POSCO plans emergency operations and production adjustments while continuing negotiations.
• FnGuide forecasts third quarter operating profit of 812.7 billion won for POSCO Holdings, approximately 27% above a year earlier.