OREANDA-NEWS. September 19, 2013. POSCO recently completed a multi-year wage negotiation with 24 investing companies by agreeing to wage levels for 2 years, and presenting a successful and stable labor-management negotiation culture model.

POSCO, in addition to the 7 companies from last year, completed negotiations with 17 investing companies this year bringing the total to 24 investing companies which have successfully completed multi-year wage negotiations. This marks participation of all investing companies where POSCO holds rights of management, aside from 4 companies which have been newly established in the past 1 or 2 years.

Since being the first large company in Korea to introduce multi-year wage negotiations in 2007, POSCO has been successfully implementing the system.

The 7 investing companies that completed multi-year wage negotiations last year are POSCO CHEMTECH, POSCO ICT, POSCO Specialty Steel, Daewoo International, POSCO AST, POSCO Himetal, and eNtoB.

This year, 17 companies—POSCO E&C, POSCO Energy, POSCO C&C, POSCO Plantec, POSCO M-TECH, POSCO P&S, POSCO A&C, POSRI, POSMATE, POSCO TMC, and SNNC—completed 2 year wage negotiations.

With the multi-year wage negotiations, wages for the following 2 years are determined through labor-management discussions, allowing employees to project subsequent wage levels thus helping with stable family budgeting.

From a company`s perspective, this can greatly reduce costs of labor-management negotiations, and both sides can focus capabilities on technology development and improving management results in years where there are no wage negotiations, bringing a positive effect to both employees and the company.

Multi-year wage negotiation, where wages for 2 to 5 years are discussed at once, is already implemented in advanced countries including the U.S., Europe, and Japan. As the multi-year wage negotiation system has been successfully introduced to POSCO and 24 investing companies, it has become a unique labor-management culture of POSCO.