[Diary Point = Reporter Kim Jung-hoon] POSCO's labor union and management have reached a tentative agreement on wages after 140 days of negotiations, including a 2.6% increase in base pay. The deal averts, for now, the indefinite strike that had been set to begin on November 2 as part of a planned third walkout, though the agreement is not yet finalized.
The two sides held final-round talks at POSCO's headquarters in Pohang on the 30th and hammered out the tentative deal. Negotiations began in June and went through roughly 30 rounds of working-level and formal talks—a process that this year included the company's first-ever partial strike since its founding.
2.6% base pay hike includes a 6 million won lump-sum payment
At the heart of the tentative agreement is a 2.6% increase in this year's base wage. The raise will be applied retroactively from January 1 this year, with the average increase estimated at about 86,000 won per month.
The deal also includes a special three-grade pay-step promotion. Combining the base pay increase, the special promotion and regular annual step increases, the average monthly wage gain is estimated at about 228,000 won, though actual amounts will vary by job category and pay grade.
The lump-sum payment totals 6 million won, made up of a 3.5 million won goal-achievement incentive, a 2 million won settlement-celebration and labor-management harmony bonus, and 500,000 won in local gift certificates.
Bonuses, allowances and medical support are also set to change
Holiday bonuses will be expanded by adding a fixed percentage on top of existing payouts—20% of base pay starting in 2027, rising to 30% from 2028 onward. Holiday allowances for shift workers and allowances for resident and maintenance staff are also included in the improvements.
Medical support will be expanded to cover not only employees but also spouses and dependent children. Starting in February 2027, the company plans to cover 90% of the national health insurance co-payment for domestic inpatient and outpatient treatment, up to an annual cap of 5 million won, along with expanded support for non-covered infertility treatment and medical costs for children with disabilities.
Eligibility for housing loans will be expanded to employees who own one home, provided they sell it within six months. The agreement also separately guarantees that union members who took part in lawful industrial action will face no disadvantage in evaluations, promotions or job assignments.
November 7 vote will determine the final outcome
The POSCO labor union will hold a member vote on November 7. If a majority approves, this year's wage and collective bargaining agreement will be finalized; if rejected, the two sides will have to return to the table, reviving uncertainty over a possible strike.
The agreement comes as POSCO faces a tougher business environment amid slowing steel demand and rising global protectionism. While union members stand to gain better pay and benefits and the company avoids production disruptions from an indefinite strike, the final outcome now rests on the November 7 vote.