Posco Announces Landmark Direct Hiring of 7,000 Subcontracted Workers, Expanding Workforce by 40%
South Korean steel giant Posco has announced a groundbreaking initiative to directly integrate approximately 7,000 workers currently employed by its subcontractors. This move, a significant industry first for a major corporation, follows the recent implementation of revised labor laws and signals a new era for subcontracted employment practices.
This strategic integration will impact subcontracted personnel across Posco’s primary steel manufacturing facilities in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province.
Currently, Posco utilizes approximately 10,000 workers through partner firms at these two massive mills. A substantial 7,000 of these employees, who perform core tasks directly essential to on-site steelmaking operations, are slated for direct employment.
The remaining 3,000 workers, primarily engaged in logistics, transportation, and packaging roles, will continue their employment under existing subcontracting arrangements.
This ambitious recruitment drive represents a significant expansion for Posco, whose current permanent workforce totals around 17,000 employees. The influx of 7,000 directly hired subcontracted workers will boost the company’s full-time staff by an impressive 40%, underscoring the scale of this unprecedented move.
Posco has confirmed that it will promptly initiate recruitment procedures for eligible subcontracted workers at its steel mills who opt to join the company directly.
This latest measure is an integral component of the steel giant’s comprehensive strategy to enhance workplace safety and mitigate risks associated with outsourced hazardous tasks. It aligns with the group’s overarching plan, unveiled last August, to fundamentally restructure its subcontracting model and significantly boost industrial safety standards.
“By directly employing these partner firm workers, we aim to fortify our industrial safety framework and secure the long-term competitiveness of our steel operations, built upon a foundation of mutual labor-management benefit,” stated a Posco official, highlighting the strategic vision behind the decision.
Representatives of Posco’s subcontracted workers have warmly welcomed the decision. “We anticipate the resolution of internal conflicts stemming from prolonged legal disputes,” an official remarked. “As integrated members of Posco, we are committed to contributing to an even safer and more secure workplace environment.”
This landmark decision is poised to conclude a complex series of lawsuits that commenced in 2011. These legal battles saw subcontracted workers seeking official recognition as Posco employees, citing direct oversight from the company. A pivotal Supreme Court ruling in 2022 affirmed that certain workers had been unlawfully dispatched and mandated their direct employment. While Posco initially hired 55 workers affected by this ruling, subsequent lawsuits continued to emerge, underscoring the ongoing legal challenges.
Significantly, this decision also follows the implementation of a major revision to the Trade Union and Labor Relations Adjustment Act, widely known as the “Yellow Envelope” law, which came into effect in March.
This revision fundamentally broadens the definition of an “employer” to encompass parent companies that exert substantial control over the working conditions of their subcontracted workforce. Crucially, it empowers subcontractor unions to engage in direct negotiations with these parent corporations.
Posco’s proactive integration strategy is widely regarded as the most significant corporate response yet to the newly revised labor legislation. Industry analysts suggest that the steelmaker has acted preemptively to mitigate potential future labor disputes and legal liabilities, recognizing the enhanced bargaining power now afforded to subcontracted workers and their unions under the new regulatory framework.
sahn
