POSCO, Hyundai Steel Start Wage Talks Under New Labor Law
Steel News | 2026-06-01 06:51:26
The wage demands submitted by POSCO's union seek a 7.1% hike in base salaries, industry sources said.
By Paul Ploumis
SEATTLE (Scrap Monster): Leading South Korean steelmakers, POSCO and Hyundai Steel, have commenced annual wage negotiations with labor unions under the country’s newly implemented labor legislation, widely known as the "Yellow Envelope" law.
The wage demands submitted by POSCO's union seek a 7.1% hike in base salaries, industry sources said. Formal negotiations on the demands submitted on May 20 are expected to begin early next month.
Meanwhile, Hyundai Steel has reportedly concluded four rounds of negotiations with its unions since the first week of May. The union seeks a 150% increase in bonuses compared to the previous year, to which the management has not yet responded positively.
The negotiations are taking place under the revised Trade Union and Labor Relations Adjustment Act. Under the legislation, parent companies and primary contractors could be held responsible as employers, allowing workers like subcontractors and platform employees to negotiate directly with them. Furthermore, it allows workers to strike over broader business management decisions, rather than just direct pay and hours.
It must be noted that both POSCO and Hyundai Steel have raised opposition to the recent rulings that support direct bargaining rights for subcontractor unions. Both steelmakers have appealed for a review by the National Labor Relations Commission.
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What is likely to be the most significant impact of South Korea's Yellow Envelope law on the steel industry?
Frequently Asked Questions
- What is the main focus of the current negotiations at POSCO and Hyundai Steel?
The negotiations focus on annual wage and compensation agreements between management and labor unions.
- What wage increase is POSCO’s union seeking?
POSCO's union has requested a 7.1% increase in base salaries.
- What is the Yellow Envelope law?
It is a revised labor law that expands workers' rights by allowing broader collective bargaining and enabling certain subcontractor and platform workers to negotiate directly with parent companies.
