POSCO's wage negotiations may break down for the first time in 55 years...Vice chairman calls for avoidance = South Korea

Posco, South Korea's largest steel company, has failed to bridge the gap between labor and management over wage negotiations, raising the possibility that wage negotiations will break down 55 years after its founding and the company will go on strike. In response to this situation, the company
Vice Chairman Kim Hak-dong sent an email to all employees on the 4th, urging them to avoid a strike. The email stated, ``The process of wage collective bargaining agreements has not been deeply and sufficiently discussed.
"We are deeply concerned about the rapid pace at which this situation is progressing." Vice Chairman Kim said, ``Posco has about 1,000 customer companies in Japan and about 2,400 overseas.
"If supply is disrupted, many products will have their contracts terminated or their delivery dates delayed, and there is a possibility that they will be subject to huge penalties."
He also said, ``POSCO started from nothing, with no resources or technology, and has developed sustainably for 50 years.
I believe that the driving force behind POSCO's growth was the stability of labor and management. "Labor and management are not separate entities; all of us are the owners, and we have grown together with the company to a world-class level."
He added, ``We are now at an inflection point for the next 50 years. Just as our employees worked together to overcome the super disaster of (Typhoon) Hinamno last year, we will continue to
I think we can overcome these difficulties," he added. On the other hand, in this year's wage negotiations, the labor union proposed a ``13.1% increase in basic salary,'' ``100 shares of company stock,'' ``establishment of a new performance incentive system,'' ``increase in lunch expenses,'' and
He demanded the establishment of new summer holidays and holiday expenses. Labor and management have negotiated more than 20th so far, but have not reached an agreement. The company suffered enormous damage from last year's typhoon, so it agreed to comply with the union's demands.
The position is that there is no room for response. The union plans to hold an extraordinary meeting of its members on the 6th to proceed with the request for adjustment from the Central Labor Relations Commission and vote on whether to go on strike.