Public Sector Labor Briefing — July 23, 2026

Top 3 Key Issues This Week

1. POSCO Union Negotiations Break Down; 58-Year Strike-Free Tradition at Risk

• Entity: POSCO Labor Union
• Status: On July 23, the POSCO Labor Union officially announced the breakdown of 2026 wage and collective agreement negotiations. This puts its strike-free tradition, maintained since the company's founding in 1968, at risk.
• Issues: Disagreements over specific wage demands and management's response remain intense; the union is expected to move toward a strike.
• Impact: As a core producer in the steel industry, a strike at POSCO could severely disrupt domestic steel supply and exports.

2 sources

ddaily.co.kr

한국GM 노조, 16차 교섭 결렬…휴가 전 타결 불발에 재파업 - 디지털데일리

ddaily.co.kr

포스코 노조, 단체교섭 결렬…파업 수순 밟나 - 디지털데일리

2. GM Korea Union Continues Partial Strikes, Aiming for Holiday Deal

• Entity: Korean Metal Workers' Union, GM Korea Branch
• Status: GM Korea’s union held partial strikes on July 21–22 and plans final negotiations before the summer holidays. Their demands include a 30 million KRW performance bonus per member, a 149,600 KRW monthly base salary hike, and a clear plan for allocating new vehicle models.
• Issues: Tense negotiations are ongoing regarding bonuses, base pay, and new vehicle allocation.
• Impact: The GM Korea wage agreement could set a precedent for the domestic auto industry, with a possibility of escalating strikes.

1 sources

yna.co.kr

한국GM 노조, 21∼22일 또 부분파업…\

3. Public Servant Unions Protest Overtime Cap Removal; Vow 2027 Wage Fight

• Entity: Korean Government Employees' Union (KGEU), National Government Employees' Union (NGEU)
• Status: Both major public servant unions are fiercely opposing the government’s plan to scrap the 4-hour daily overtime cap. They argue that this encourages long working hours without addressing the underlying compensation structure. They have also declared an all-out struggle for a 7.1% wage increase in 2027.
• Issues: A clash between deregulating working hours vs. worker protection and the struggle for realistic wage adjustments.
• Impact: Changes in public sector working conditions are expected to have significant social consequences for public service quality and employee welfare.

2 sources

khan.co.kr

“수당은 그대론데 무제한 노동 길 열려”···공무원노조 ‘초과근무 4시간 상한 폐지’ 비판 - 경향신문

khan.co.kr

‘노동의 몫’ 요구 커진다…원·하청 연대로 넓어지는 ‘하투’ 전선 - 경향신문

Negotiation & Dispute Trends

• GM Korea Union: Held partial strikes July 21–22; demanding 30 million KRW bonuses, a 149,600 KRW monthly base pay hike, and new vehicle allocations. Final pre-holiday talks scheduled.

• POSCO Labor Union: Announced the breakdown of 2026 wage/collective bargaining on July 23. A 58-year strike-free record is now in jeopardy.

• Korean Public Service and Transport Workers' Union: Held a press conference on July 20 in front of the Seoul Regional Employment and Labor Office to demand the designation of city buses as essential public services be halted, releasing a petition from citizens and bus workers.

Industrial Safety & Working Conditions

• Serious Accident Disclosure & Mandatory Safety Oversight: A policy is being pushed to mandate that businesses with 500+ employees disclose their safety management levels if a serious accident occurs, including annual reporting on subcontracted worker deaths.

• Recurring Serious Accidents at HD Hyundai Heavy Industries: The Metal Workers' Union Ulsan Headquarters condemned yet another worker death at HD Hyundai Heavy Industries, urging the Ministry of Labor to take decisive action. The union warned of further struggle, citing that another migrant worker had died in a site where safety devices were reportedly disabled.

• AI/Robot Adoption & Union Backlash: While the steel industry is rushing to adopt AI and robots to prevent accidents, the Metal Workers' Union is pushing back due to concerns over job reorganization and employment security.

Policy & Legal Trends

• Move to Narrow Scope of Yellow Envelope Law: Four months after the law’s implementation, the Ministry of Labor is attempting to redefine the boundaries of "labor disputes." There is a move to scale back the expanded scope (which currently includes "management decisions affecting working conditions"), drawing sharp criticism from the two major labor federations.

• Debate Over the Spirit of the Yellow Envelope Law: Media and labor groups are locked in an intense debate over the Ministry’s attempt to narrow the scope, with unions fearing a dilution of workers' rights.

What to Watch Next

• POSCO Union Strike Schedule (July 24–25): A specific strike timeline is expected following the breakdown declaration; monitor potential impacts on the steel industry.

• GM Korea Final Pre-Holiday Negotiations (approx. July 25): High risk of escalating strikes if a deal isn't reached before the break.

• Public Servant Union 2027 Wage Negotiations (August): Full-scale negotiations and potential protests are expected in August as unions push back against overtime deregulation.

Reader Action Items

• Union Activists: Closely monitor the negotiation schedules and strike preparations at major sites like POSCO and GM Korea; strengthen organizational efforts for potential solidarity strikes.

• Policy Officials: Assess the possibility of the Yellow Envelope Law debate moving toward legislative action in the National Assembly; evaluate the need for prior consultation with labor unions.

• Public Sector HR Managers: Prepare for safety and health information disclosure requirements under the upcoming serious accident public disclosure policy and conduct internal training on amendments to the Occupational Safety and Health Act.