[Editorial] Posco must act to resolve standoff

Six days have already passed since about 1,000 construction workers in Pohang began occupying the headquarters of Posco, one of South Korea’s major steel manufacturers. Most of the construction workers are around 60 years old; workers in Pohang since the beginning of the city’s rise, they have talked about pride in their accomplishments, that they "built this city and its factories.”

Most media, as always, have stressed that the demonstration would cause damage to Posco to snowball to the sound of 10 billion won (11 million USD) in lost production a day and would undermine external credibility. However, we should focus our attention on the workers’ difficult situation, that they no longer feel proud to be construction workers because of this recent struggle for rights. Before decrying their strong protest tactics, we should pay attention to why they would choose such a forceful means of protest. In general, such extreme tactics are the last resort for the socially underprivileged class.

Since April, about 3,500 unionized construction workers in Pohang have participated in about 10 negotiations with their companies, demanding among other things a 15-percent wage increase, an eight-hour work day, a ban on extra working hours, and a five-day work week. Excluding wages, the union’s requests are all guaranteed by labor law. Construction companies had refused to accept these requests, saying that ’a company will collapse if a paid-Saturday-break system is adopted,’ or, ’construction companies will go under if the 15-percent rise in wages is accepted,’ and ’issues of management and personal matters are not subjects to bring to the bargaining table.’ Construction workers at Posco sites have demanded the steelmaker arbitrate the dispute, but Posco refused to do so, prompting the workers to occupy the headquarters.

If Posco does not act, problems surrounding workers of the steelmaker’s subcontractors will not be easily resolved. The union of construction workers is willing to negotiate with Posco anytime. The union, in favor of a resolution, has already backtracked on its negotiating stance on items such as a paid five-day work week, a ban in the use of foreign workers, a prevention of further subcontracting, and a rise in wages. Now it is time for Posco to act. If Posco continues to relay its burden to subcontractors, it will lengthen the standoff. That will also hurt Posco’s international reputation.