Posted on : Jul.18,2006 21:15 KST Modified on : Jul.19,2006 16:41 KST

The government said Tuesday it was willing to mediate a prolonged labor dispute involving POSCO if striking workers voluntarily end their occupation of the steel giant's head office.

About 2,000 workers from POSCO's subcontracting companies forced their way into POSCO's 12th story building in the southeastern industrial city of Pohang on Thursday, protesting what they called the steelmaker's illegal involvement in their labor disputes with their companies.

They claimed that POSCO obstructed their legal action seeking higher wages by requesting police intervention and providing substitute workers to weaken their bargaining position. POSCO denied the charges.

Police estimated that about 1,000 workers remained holed up inside the building.

As the standoff was drawn into its sixth day, Prime Minister Han Myung-sook convened a special meeting of concerned Cabinet ministers and issued a statement calling for a peaceful end to the dispute.

"The government hopes that the workers cease the violent protests, as now is the time for management and workers to pull their strength together for (the country's) economic development," the statement said.

"The government plans to fully mediate negotiations if the workers end the occupation peacefully," the statement said.

The government warned that it would sternly deal with the strikers if they ignored its appeal.

There was no immediate response from the striking workers but their umbrella labor group asked the government to arrange a meeting between the striking workers and POSCO "without any conditions attached."

"The government should acknowledge POSCO's employer status (over the subcontracted workers) and the management should seriously engage in negotiations with the workers to peacefully resolve the situation," the Korean Confederation of Trade Unions said in a statement.

On Tuesday evening, two lawmakers of the opposition Democratic Labor Party -- Rep. Dan Byung-ho and Rep. Shim Sang-jeong -- met Labor Minister Lee Sang-soo, delivering their call for the government to peacefully resolve the labor standoff.

Lee responded positively, saying the government will make full efforts to achieve a peaceful resolution, according to a ministry official.

Several dozen workers and police were injured in repeated clashes outside the building over the weekend. Thousands of riot police were deployed but were reluctant to move into the building for fear that forceful means could cause serious accidents.

Seoul, July 18 (Yonhap News)

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