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NO Title Date View
5 The Labor Rights Issue at POSCO ASSAN TST in Türkiye (2024.2Q) 2024-06-28 more
4 Statement on ISS Inquiries about ESG (2024.1Q) 2024-03-11 more
3 The Labor Rights Issue at POSCO ASSAN TST in Türkiye 2023-06-30 more
2 Statement on ISS Inquiries about ESG (2023.2Q) 2023-05-31 more
1 Statement on MSCI, ISS Inquiries about ESG (2023.1Q) 2023-04-12 more

Labor Rights at POSCO ASSAN TST in Türkiye ('24.2Q)

June 28, 2024
WHAT IS THE MATTER?
Issues brought by the dismissal of employees at POSCO ASSAN TST, an overseas subsidiary of POSCO, in November 2017
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POSCO ASSAN TST
A cold-rolled stainless manufacturing subsidiary established as a joint venture between POSCO and Kibar Holding of Türkiye in 2011
Overview of POSCO ASSAN TST (as of the end of 2023)
  • Equity structure: POSCO (60%), Kibar Holding (30%), POSCO INTERNATIONAL (10%)
  • Annual sales: Nearly 200,000 tons
  • Annual revenue/operating profit: KRW 416.7 billion/ -KRW 59.5 billion
  • Employees: 492 directly-employed persons (470 persons at the Izmit plant, 22 persons at the Istanbul office)
PROGRESS&PROSPECTS
We fully disclose the accurate facts, the efforts we have made so far, and our future plans as to the concerns over labor rights issues raised by stakeholders in relation to POSCO ASSAN TST.
1) Dialogue with the Union
PROGRESS Facts
  • In January 2018, the Birleşik Metal Workers’ Union raised a lawsuit to challenge the company’s decision not to approve the establishment of a labor union. While POSCO ASSAN TST won the first and second trials, the company lost the case in the final trial in June 2022
  • Grounds for losing the case

    The first and second trials supported the company’s claim that both the Istanbul office and the Izmit plant constitute POSCO ASSAN TST and thus the quorum was not reached to form a labor union. However, the final trial recognized the Izmit plant as a separate worksite to determine the quorum was reached (50% of total headcount)

Date Union Members/ Total Employees Compliance with the Quorum Basis for the Court’s Determination: Criteria for Union Membership Calculation
Nov. 15, 2017 212 / 440 Non-compliant (48.2%) Included employees at the Istanbul office (Ministry of Labor)
2021.4.8. 212 / 440 Non-compliant (48.2%) Included employees at the Istanbul office (1st trial)
2022.1.20. 214 / 442 Non-compliant (48.4%) Included employees at the Istanbul office and 2 dismissed labor members (2nd trial)
2022.4.28. 211 / 420 Compliant (50.2%) Excluded 22 employees at the Istanbul office (Supreme Court)

  • It is not true that the company deliberately changed its location not to recognize the labor union.

    Meanwhile, it is correct that the company modified its business registration. At the time of incorporation, the Izmit plant had not been built yet and the Istanbul office was initially registered as sales business in March 2011.
    Following the construction of the Izmit plant in February 2014, the plant was registered as metal business and the Istanbul office also followed suit in November 2017.

  • The company is more than willing to engage in dialogue with an official labor union should there be one, and has not done so since there was no official labor union to engage with following the court rulings.
    It was the Birleşik Metal Workers’ Union that has requested for engagement so far, not an official labor union of POSCO ASSAN TST.
    No company engages in dialogue with a specific labor union federation in the absence of an official labor union.

Progress

  • The Birleşik Metal Workers’ Union pursued once again the establishment of a labor union at POSCO ASSAN TST, and notified the company that it would stage a general strike on February 24, 2023, which did not happen.
    In March 2023, the Ministry of Labor in Türkiye made its final confirmation that the Union’s request to approve a labor union at POSCO ASSAN TST was invalidated on the grounds that the Birleşik Metal Workers’ Union failed to comply with the legal procedures and requirements specified in the nation’s local Trade Unions and Collective Bargaining Law No. 6356.

  • Basis for the determination made by the Ministry of Labor in Turkiye to invalidate the request for establishing a labor union

    While Türkiye recognizes the individual freedom to join trade unions, such unions should meet the majority requirements within their company and gain approval as company union in order to exercise collective bargaining rights.

  • Legal requirements for labor unions to secure collective bargaining rights
    • a. A trade union is established
    • b. The trade union is recognized as official one when 1% or more of total employees working in the industry the union associates itself with join the union
    • c. If the number of employees who are a member of the official trade union accounts for more than a majority of total employees of a company, the union may apply to form a labor union and gain collective bargaining rights
    • d. The labor union may engage in collective bargaining negotiations, and if such negotiations fail to reach agreement, the union earns the right to stage a general strike
      • - If a general strike is not staged within 60 days after the right to strike was granted, the company labor union is deprived of the right to collective bargaining (Article 60-1)
      • - For a general strike to be recognized as legitimate, one fourth or more of initial union members should retain their membership. If this number declines to below one fourth, it is possible to request that the general strike be suspended, and the strike ceases to have legal validity.
    • e. If a legitimate general strike is not viable, the labor union loses its approval. (see Q1, Article 75-6)
  • Article 75-6 of the Trade Unions and Collective Bargaining Law No. 6356 of TurkiyePDF-doc-icon

    If it is confirmed that, for the purpose of verifying the authority of the union staging a general strike, three-quarters or more of the union members at the workplace have left the union on the date of applying for the union’s establishment, either party may apply to the court to end the general strike. The notification on ending the general strike shall be issued on the date specified by the court according to the procedures laid out in Article 75-2 of this Law.

  • Article 60-1 of the Trade Unions and Collective Bargaining Law No. 6356 of Turkiye

    The decision to strike shall be based on the conditions specified in the 5th paragraph of Article 50 of this Law. Such a decision may be obtained within 60 days from the date of notification of the dispute report, and can be implemented from the date of notifying to the other party six working days in advance. If a strike decision is not made within this period or the date of strike implementation is not notified to the other party, the authority to engage in collective bargaining shall be forfeited.
2) Reinstatement of Dismissed Employees
PROGRESS Facts

  • Dismissed employees raised a lawsuit to confirm that they were wrongfully dismissed in November 2017, and the decision of the Supreme Court was finally issued in May 2021. The Supreme Court ruled that 67 out of 69 dismissed employees, excluding two who dropped their lawsuit midway, (1) be reinstated, and (2) be paid labor union compensation.

    • Specifics of the final ruling issued by the Supreme Court

      (1) Reinstate those employees who were unfairly dismissed
      (2) Pay wages for the period between the submission of reinstatement application and the actual date of reinstatement (up to 4 months of pay) Pay employees who were members of the trade union at the time of dismissal one year of wages as labor union compensation

  • It is not true that nearly 70 employees were dismissed and involved in litigation as reported by some media Of those 69 dismissed employees, two were dismissed for personal misconduct irrelevant to the labor rights issues and voluntarily dropped their lawsuit during the proceedings.
Progress
  • The company (2) paid all labor union compensation, and (1) determined that it was preferable to provide additional compensation rather than abruptly reinstating dismissed employees who should have found new jobs to maintain their livelihood more than three years after their dismissal on the basis of the ‘employer’s elective right to labor contracts’ stipulated in Article 21 of the nation’s Labor Law No. 4857.
    • Article 21 of the Labor Law No. 4857 of Turkiye

      If an employer does not re-employ a dismissed employee, the employer shall provide the employee with compensation worth 4 months’ pay at a minimum and up to 8 months’ pay. When a court rules that the dismissal was wrongful, the court should determine the amount of compensation to be paid to the employee who was not re-employed. The employee, until the court’s ruling is finalized, may receive maximum possible pay and other entitlements for the period of unemployment until he/she finds employment.

  • The company transferred compensation for all 67 plaintiffs to the litigation representative, and these dismissed employees all received their compensation.
  • If dismissed employees wished to be reinstated, they should have refused to accept the compensation and requested reinstatement to the company. None of them have made such reinstatement requests, and all of them received compensation.

  • Afterwards, 62 of the 67 plaintiffs who had received compensation filed a separate lawsuit to ‘seek additional compensation’, and 56 of the 62 cases raised have been resolved through the payment of extra compensation* to date.

    *The plaintiffs demanded compensation corresponding to the ① wage raises and ② benefits that they missed during the dismissal period, and individually filed 62 lawsuits as the amount of compensation varies according to their job level and other factors. The proceedings are currently ongoing.

  • As to the remaining six lawsuits, it is not that they are pending due to any unresolved disputes, and will be consecutively closed as the court determines their individual compensation amounts.
  • Both the president and the HR manager who were with the company back in 2017 have been replaced. Currently, the company holds regular labor-management meetings between 4 leaders of the employee representative body and the president, which serves as an official channel to heed employee feedback.
PROSPECT Future Plan
  • The new president, as the chief executive of POSCO ASSAN TST, is fully aware of the importance of these labor rights issues, and has disclosed a letter under his name to commit to transparent communication with external stakeholders and responsible improvement efforts.
    This letter specifies that no request for reinstatement has been made by dismissed employees over the years, and embodies the company’s strong commitment to respecting labor rights.
3) POSCO ASSAN TST’s Efforts to Improve Labor Rights
PROGRESS Progress

  1. Improving the operation of the employee representative body (Jan. 2023 ~)

    - While there is no labor union at POSCO ASSAN TST currently, an employee representative body elected by employees through direct voting pursuant to local labor laws is up and running officially, and its roles have been effectively strengthened since 2023.

    Category Previous After Improvement
    Employee representative 4 persons 4 employee representatives, 20 members of the Happiness Team
    Cycle Semi-annual Quarterly
    Company representative HR manager President
    Discussion results Partially communicated Employee representatives and the Happiness Team hold briefings for all employees
    Meeting Key Discussion Topics and Progress Made
    Q1
    • Agreed to increase wages in line with the MESS agreement1) through consultations made on pay raises
    • Reduced working hours through consultations on changing shift work hours
    • Agreed to raise allowances for Ramadan and Kurban Bayram from 1,000TL to 1,750TL
    • Agreed to provide Sodx cards as Ramadan gift certificates
    • Agreed to extend paternity leave from 4 days to 15 days
    Q2
    • Agreed to host a labor-management sports day event
    • Decided to shut down operations two days during Ramadan through production schedule coordination
    • Agreed to offer leave by closing the plant before and after Sacrifice Day
    Q3
    • Agreed to provide 10,000TL as incentives for all employees in consideration of the nation’s inflationary pressure
    • Agreed to hold a family invitation event
    Q4
    • Agreed to shorten the cycle of on-site staff performance assessment from two to once a year
    • Decided to retrofit the CGPL locker room

    1) Agreement reached between the Türkiye association of labor unions and the Employers’ Association of Metal Industries (MESS) through wage negotiations

  2. Re-assessing the company’s working environment with the help of a third-party organization (Apr. 2023)

    • To objectively assess the human rights conditions of POSCO ASSAN TST, due diligence was performed in partnership with intertek, a global organization, in April 2023.
    • Intertek made assessment in the five areas of Labor, Wage and Work Hour, Safety and Health, Management System, and Working Condition through written assessments and employee interviews. Specifically, Intertek looked into six subcategories of child labor, compulsory labor, discrimination, unjustifiable disciplinary action/bullying, freedom of association, and employment contract in the labor category.
    • This revealed that POSCO ASSAN TST employees were highly aware of labor rights, were guaranteed their freedom of association and right to organize, had access to whistleblowing mechanisms for raise concerns over misconduct, and were free from any retaliatory action by the company for their justifiable behaviors. All in all, the company gained 97 points, far above the average score of 75 points among local companies, and scored perfect 100 points in the labor category for zero non-compliance.
    Category Score
    Labor 100
    Wage and Work Hour 100
    Safety and Health 95
    Management System 96
    Working Condition 100
    Total Score 97

  3. Stipulating the company’s Human Rights Management Guideline in local language (Apr. 2023)

    • While there did not exist human rights management policies specifying freedom of association among others, the company officially stipulated its Human Rights Management Guideline in both local and English languages, and disclosed it on its POSCO ASSAN TST website. icon
    activities_eng

    POSCO ASSAN TST “Human Rights Management Guideline”

  4. Celebrating Labor-Management Harmony Day

    • The company celebrates Labor-Management Harmony Day each year. In 2023, a company-wide sports day event and a family invitation event were held with the labor-management council taking the lead.
    img_no_39-4

    Labor-management sports day (May 3, 2023)

    img_no_39-5

    Family invitation event (Sep. 6, 2023)

    img_no_39-6

    Employee representatives at the labor management council attended the safety training provided by POSCO (Sep. 18, 2023)

4) Headquarters’ Efforts to Improve Labor Rights
PROGRESS Progress
  • ・Establishing a Group-wide human rights management policy
    - POSCO Holdings publicly disclosed our human rights management policy icon which covers labor rights through reporting this policy to the Board of Directors in August 2022, and recommends that other operating companies to abide by this policy.
  • Robust monitoring at the holding company level and ensuring transparent external communication
    - POSCO Holdings engages in continuous communication with POSCO and overseas corporations to monitor the improvements made, and holds ESG Non-Deal Roadshows overseas and video conference calls to fully communicate the progress made - We keep the UN PRI Advance updated on this specific issue through regular meetings, and our CSO held a meeting with the organization in January 2024 to deliver leadership’s opinion from the viewpoint of the holding company on this issue.
  • POSCO’s assessing labor risks at overseas corporations
    - Following the assessment made on labor rights issues at POSCO ASSAN TST, POSCO’s Human Resources and Corporate Culture Office conducted ‘labor risk assessment’ on all overseas corporations in Q1 2024 in an aim to prevent the reoccurrence of labor issues and provide a workplace where everyone feels respected.

Results of the labor risk assessment POSCO performed on overseas corporations in 202

  • Target: 11,991 employees at 23 overseas corporations in 9 countries
    - Criteria: 13 overseas steel mills and 10 processing centers with 200 or more local employees
  • Period: Feb. 22 ~ Mar. 6, 2024 (2 weeks)
  • Method: On/offline survey
  • Assessment item: 18 items* across 4 areas
    These include three for organizational management, 8 for HR and labor systems, 4 for labor-management cooperation, and 3 for protection of employee rights and interests, and the following 7 items are directly associated with labor issues
Category Description
Labormanagement cooperation (4) There are official mechanisms or channels for employees to raise and resolve their concerns.
Handling outcomes for employee grievances or VOC are promptly communicated to employees.
Leadership regularly gathers employee feedback through discussions.
Please share with us any improvements to be made or VOC to address in relation to labor-management relations. *Open-ended question
Protection of employee rights and interests (3) The company recognizes the employee representative body, such as labor unions, as an equal partner and engages in proactive communication.
The company does not take any disadvantageous action against employees for reasons of exercising their due rights at the employee representative body.
Leadership regularly interacts with the employee representative body to consult on labor issues and employee grievances.
  • Assessment results: 79% in response rate (9,414 persons), 85.2 points in score
Category Target Respondent Response Rate Average Score by Area
Total Organizational Management HR and Labor LaborManagement Cooperation Protection of Rights and Interests
23 corporations in 9 countries 11,991 9,414 79% 85.2 88.4 83.8 84.7 85.6
  • Overall result: While the score was above the average in most Northeast Asian and Southeast Asian countries, corporations in India and Mexico among others scored relatively low
  • Key VOC: Risks such as labor rights violation were not identified. Yet, there were strong demands to improve labor income/welfare & benefits amid the stagnant economic situation, arrange employee feedback channels and operate other relevant systems, and provide opportunity for professional training.
Category Key VOC Improvement Plan
Organizational management/ HR and labor
  • Need to strengthen closer ties between labor and management which were undermined during the pandemic
  • Provide technical training, seminars and other training opportunities
  • Articulate employees’ job functions and ensure systemic performance management
  • Hold townhall meetings presided by the president to expand communication between leadership and employees
  • Identify training courses appropriate for different job functions and provide top talent with training opportunity
  • Systemize job descriptions and introduce a performance assessment system
Labor-management cooperation/ protection of rights and interests
  • Improve welfare & benefits programs
  • Elaborate on policy changes and labor-management consultation results
  • Create an online anonymous proposal bulletin board and hold quarterly discussions between labor and management representatives
  • Heed diverse employee needs and discuss improvements through the joint labor-management task force
  • Establishing the Human Rights Center as a dedicated human rights organization

    • - In January 2023, the Human Rights Center was established under the Legal Affairs Office. As of June 2024, five employees are working at this dedicated human rights organization.

  • Conducting human rights audits at overseas corporations
    - POSCO’s Human Rights Center under the Legal Affairs Office established a human rights audit system for global operations, and conducted human rights audits (human rights impact assessment) on all 49 overseas corporations, excluding POSCO ASSAN TST (received third-party on-site due diligence) to gauge their human rights management performance.
  • - The audit results based its efforts to pay direct on-site visits to some overseas corporations to assess the validity of audit items, interview employees, and provide training. This also involved process improvements so that important HR/labor decisions are not made internally at the corporation level but are immediately escalated to the Human Resources and Corporate Culture Office for decision-making. .

POSCO’s Human Rights Audit Operation System for Overseas Corporations

  • Overseas corporation
    POSCO analyzes their human rights performance through ① self-reviews and ② employee awareness surveys, and ③ conducts on-site due diligence on corporations identified for issues.
1 Self-review at overseas corporations

Responsible expatriates assign scores through internal checks on audit items and surveys (reviewed by the president of the corporation)

2 Awareness survey on overseas employees

Assign scores to the corporation’s human rights protection performance based on survey responses from global staff

3 Overseas on-site due diligence

Directly visit 2-3 corporations noted for issues, analyze area-specific strengths/weaknesses, and propose improvements

  • ※Result feedback: Communicate area-specific scores, issues, key VOCs, and improvement plans to all corporations following audits
  • Audit areas 8 focus areas of human rights suggested by the UN and governments
  1. Human rights management system
  2. Respect for stakeholders
  3. Non-discrimination in employment/work
  4. Elimination of compulsory labor
  5. Guarantee of health/safety
  6. Abolishment of child labor
  7. Recognition of freedom of association and collective bargaining rights
  8. Respect for privacy and data privacy

Results of POSCO’s Human Rights Audit and On-site Due Diligence in 2023

  • Target: Nearly 8,000 locally hired employees at overseas corporations (40% in response rate)
    *POSCO ASSAN TST was excluded as it received due diligence conducted by a specialized organization
  • Period/method: Apr.~May 2023 / Online survey on responsible expatriates and global staff (9 languages)
  • Audit results: While the score was good (80 points and above) at 41 corporations (84%), a majority of total, there was room for improvement in addressing the gap in perceptions between companies and employees
    - [Excellent] Ban on compulsory/child labor, guarantee of health/safety [Improvement needed] Human rights management system, respect for stakeholder human rights
  • mprovement activity: Communicate to all corporations results (Jul. 2023)* and vulnerabilities requiring improvement, standardize requirements on respect for human rights and communicate grievance mechanisms/responsible staff, and conduct on-site due diligence on corporations in relatively poor conditions
    *Feedback: Corporation-specific audit scores, VOCs, relevant issues, and area-specific improvement plans

On-site due diligence

  • Target: 3 corporations in Latin America
  • Period: Jul. 24 ~ Jul. 28, 2023
  • Details: Interview with the president and local staff, review work documents, check working conditions, etc.
  • Results
    - Generally established systems and regulations on par with global standards and took activities to respect human rights
    - Attributed negative responses to declining income and increasing work burden (new customers) due to revised local laws
    - Proposed to improve employee awareness through continuous training/promotion, strengthened internal activities

Audit results by region

  • ・Out of seven regions (Northeast Asia/Southeast Asia/Southwest Asia/North America/Central and Latin America/Oceania) where overseas corporations are based, human rights awareness was generally high among managers and local staff in Oceania, Northeast Asia, and Southeast Asia while such awareness was low among both managers and local staff in Central and Latin America
  • For corporations with high awareness, efforts will be made to highlight their strengths in terms of human rights system management operations and freedom of association and discover/disseminate best practices to help raise human rights performance across all regions. For corporations with low awareness, standardized formats will be presented for human rights management and training to improve their management efficiency.

Audit results by level

  • Ages: Tendency among young staff (20’s and 30’s) to score low on human rights assessment
  • Years of employment: Human rights awareness tends to increase in proportion to the years of employment.
  • Gender: Female employees showed a high level of awareness on average. Male employees assigned low scores specifically in such items as unnecessary overtime work and disadvantages associated with labor union activities
  • Corporations will be requested to perform internal analysis to be more careful with their change management for relatively more vulnerable groups.
  • Human rights audit results by audit area and actions taken for risks
    - Out of eight human rights areas, ‘abolishment of child labor, ban on compulsory labor, elimination of compulsory labor, guarantee of health and safety, and respect for privacy and data privacy’ showed excellent results. In particular, abolishment of child labor scored the highest as both managers and employees concurred on its importance.
  • The following four areas showed relatively poor audit results or discrepancies in perceptions between managers and staff, and work is ongoing to take action to mitigate risk for respective issues.
Areas of Low Awareness Audit Area Issue Action Taken for Risk
1 Human rights management system operations
  • Greatest gap in perceptions of employees between high-performing and low-performing corporations
    - Lack of relevant regulations and insufficient system dissemination among low-performing corporations (in Central and Latin America and others)
  • Lack of awareness on grievance mechanisms/procedures and concerns on confidentiality
  • Establish human rights management policies and actively disseminate related details (campaigns, individual e-mails, etc.)
  • Designate personnel dedicated to human rights issue handling, and establish and communicate official remedies
  • Strengthen regular human rights training, and regularly share human rights guidelines/cases of failing to respect human rights
2 Guarantee of freedom of association and collective bargaining rights
  • VOC submitted from some corporations on concerns over disadvantages associated with labor union activities (some cases were identified where HR-related disadvantages are unconditionally associated with labor issues)
  • Discrepancies among corporations in a single country according to company-level communication efforts and employee treatment
  • Establish labor risk audit procedure aside from human rights audits for overseas corporations (Human Resources and Corporate Culture Office)
    - Undertake activities to prevent labor risk and internally make improvement, with consulting provided by the HQ when necessary
  • Forge closer ties between labor and management, arrange regular communication channels, and share agreements made between labor and management
3 Non-discrimination in employment and work
  • Greatest disparities in perceptions between managers and employees (right to work under fair conditions, etc.)
  • Lack of consensus and understanding on differential allowances tied to positions/functions
  • Clearly communicate corporate systems, provide training, and build consensus among employees
4 Respect for stakeholder human rights
  • VOC submitted on disrespectful or threatening behaviors among employees
    - Relatively low awareness among corporations located in Central and Latin America compared to other regions
  • Lack of awareness on standards to respect human rights of internal/external stakeholders
  • Conduct on-site visits on corporations in Central and Latin America, and provide training to prevent bullying and sexual harassment
  • Focus on managers at overseas corporations in elevating responses to internal/external stakeholders
    - Take appropriate action on human rights-related external VOCs and provide stakeholders with human rights training or relevant information
PROSPECTS
Future Plan
  • Conducting regular human rights audits on overseas corporations and reporting the audit results to the Board of Directors

    - We will perform regular human rights audits on overseas corporations each year, and report the audit results to the Audit Committee under the POSCO Holdings’ Board of Directors to ensure relevant issues are handled at the holding company level.

POSCO’s overseas corporation human rights audit plan for 2024

[First half] Conduct online on-site due diligence on the Indonesian corporation based on 2023 human rights audit results

  • Target: Corporation in Indonesia (steel mill, nearly 2,670 global staff)
  • Period/method: May~Jun. 2024 / Online human rights due diligence
  • Audit area: 6 areas where employee awareness scores were lower than the average of all overseas corporations out of 8 human rights audit areas in 2023
    *Human rights management system operations, respect for stakeholder human rights, non-discrimination in employment and work, etc.
  • Details: Conduct detailed checks on work documents to assess area-specific compliance (system/training/on-compliance, etc.) and interview expatriates/global staff online

Second half] Conduct human rights audits on all overseas corporations and on-site due diligence on corporations identified for issues (plan)

  • Target: all 50 overseas corporations
  • Period/method: Q3, 2024, self-checks at the corporation level and employee awareness surveys
    *Conduct on-site due diligence on corporations identified for issues based on audit results (Q4, 2024)

※Conduct another round of reviews on each of the eight human rights audit areas based on 2023 results and pursue improvements when needed, upgrade the audit by making better use of open-ended questions

  • Group-wide human rights management and human rights due diligence system audits - Plan to revisit POSCO Group’s human rights management system and human rights due diligence guidelines with the help of external organizations specializing in human rights in H2 2024.
    - Develop Group-level human rights management plans accordingly, report to the Board of Directors to finalize these plans, and elaborate on the finalized plans and their implementation through the following year’s sustainability report

THE FACTS

Issues related to employee layoffs at POSCO Asan TST, an overseas subsidiary of POSCO, in November 2017

Timeline Facts
Nov. 13, 2017
  • The Birleşik Metal Workers’ Union, a trade union in Türkiye (the trade union hereinafter), requested the nation’s Ministry of Labor to approve the establishment of a labor union at POSCO ASSAN TST.
Nov.14~Nov.21,2017
  • POSCO ASSAN TST dismissed 69 employees.
    - Reasons for dismissal: Violation of the Türkiye Constitution and labor laws, and the company’s internal regulations (These employees, who were members of the trade union, unfairly coerced their coworkers to join the union to expand its membership)
Lawsuit 1. Lawsuit to confirm that they were wrongfully dismissed
  • As of June 2024, there were no further litigations over reinstatement, and only those lawsuits concerning the payment of additional compensation were ongoing.
  • Additional compensation was provided in most cases in line with the compensation amount determined by the court for individual plaintiffs, and the remaining six cases will be resolved by paying compensation immediately after the course makes its decision.
Nov. 30, 2017 Lawsuit raised by dismissed employees
  • All 69 dismissed employees raised a lawsuit to confirm that they were wrongfully dismissed.
  • Two of them dropped their lawsuit during the proceedings. A Total of 67 lawsuits were raised individually by 67 dismissed employees, and the company lost in its final appeal.
  • Final ruling
    (1) Reinstate those employees unfairly dismissed
    (2) Pay wages for the period between the submission of reinstatement application and the actual date of reinstatement (up to 8 months of pay), and pay employees who were members of the trade union at the time of dismissal one year’s worth of pay as labor union compensation
May 2021 ~ present
  • Pursuant to Article 21 of the nation’s Labor Law No. 4857 specifying ‘employer’s elective right to labor contracts’, the company paid compensation to dismissed employees to honor both (1) and (2) of the final ruling.
  • Out of dismissed employees who actually received compensation, none of them requested reinstatement to the company as of June 2024. Meanwhile, 62 of these employees raised lawsuits demanding extra compensation: 56 of them received additional compensation and their cases were closed as of June 2024.
  • For the remaining six lawsuits, compensation will be provided according to the court ruling determining the amount of additional compensation.
    ※Reason:Request additional compensation for the wage raises and benefits they missed during the dismissal period
Lawsuit 2. Lawsuit to counter the decision not to approve the establishment of a labor union at POSCO ASSAN TST
  • While the labor union won the case in the final trial, the union no longer satisfied the necessary legal requirements as of March 2023, and the nation’s Ministry of Labor made its final confirmation that the request of the trade union to approve a labor union at POSCO ASSAN TST was no longer valid
Jan. 3, 2018 Lawsuit raised by the trade union Mar. 2020 1st trial ruling Apr. 2021 2nd trial ruling Jun. 2022 Final ruling
  • The trade union raised a lawsuit to counter the company’s decision not to approve a labor union
  • POSCO ASSAN TST won the case in the 1st trial (Mar. 2020) and the 2nd trial (Apr. 2021) ※Grounds for winning the case: The trade union failed the meet the quorum required to establish a labor union
  • POSCO ASSAN TST lost the case in the final trial (Jun. 2022)
    ※Grounds for losing the case: The court determined that the trade union met the quorum when only employees working at the Izmit plant were counted with those working at the Istanbul office excluded.
Jun. 2022 ~ present
  • JThe trade union pursued again to establish a labor union at the POSCO ASSAN TST, and requested the Ministry of Labor to engage in mediation to resolve the issue. The Ministry stated its position that such mediation was not possible.
  • In February 2023, the trade union notified the company that union members would stage a general strike on February 24, 2023, which did not happen.
Mar. 9, 2023 ~
  • After confirming that the general strike did not happen, the Türkiye Ministry of Labor made its final confirmation on March 9, 2023 that the request of the trade union to approve a trade union at POSCO ASSAN TST was invalidated as the trade union failed to meet the necessary legal procedures and requirements specified in the nation’s labor laws, and notified this decision to POSCO ASSAN TST

Statement on ISS Inquiries about Safety & Health

('24.1Q) March 11, 2024
In the first quarter of 2024, ISS prepared inquiries about POSCO's ESG management and sent them to POSCO.POSCO will respond to the relevant inquiries as follows and will continue to communicate transparently with stakeholders.

  1. Clarification on the fact that subcontracted workers account for 76% of workers who suffer fatal accidents at POSCO steel mills

    First, with regard to the number of disaster victims mentioned at the Consumer Sovereignty Citizens' Conference, we correct the parts that do not match the actual data numerically as follows.During this period, the actual number of serious disasters at POSCO Group that occurred within the steel mill was 20, not 17, and the number of employees of related suppliers was 15, not 13.

    Accordingly, it seems correct to judge that the accident rate of related suppliers is 75%, not 76%.

    ※ Industrial accidents are matters that companies disclose only for matters that have been reported and investigated by the government and cannot be partially acknowledged or concealed. If the media reports were true, there would have already been a complaint and action by the Ministry of Employment and Labor, but there are no such records. Every year, we disclose not only industrial accidents that occurred in our direct management, but also industrial accidents that occurred in our partners/affiliates in our sustainability report through verification by a third-party accounting firm.

    POSCO carried out various activities in 2023 to establish a safety management system for related suppliers and strengthen safety responsibility.First, we conducted on-site mentoring and produced and distributed a safety management guide to establish a safety management foundation for POSCO Group companies and related suppliers.In addition, we are implementing a safety hurdle system that certifies the company's safety management system when signing a contract with a related supplier, and conducting an evaluation of the CEO's on-site safety activity performance.In order to support newly established corporations that may be vulnerable to safety management, we operated the 'Maintenance Business Company Safety System Establishment TF' and conducted certification regarding compliance with the Serious Accident Punishment Act through support from the POSCO Legal Department.

  2. Explanation of the results of the special supervision investigation by the Ministry of Employment and Labor (Daegu region, Gwangju region) from 2020 to 2021

    [Daegu Regional Employment and Labor Office Special Supervision] A fine of KRW 307 million was imposed on 111 cases and the full amount was paid, and action was taken on all 220 action recommendations, including 'Preperation of JSA(Job Safety Analysis)'.

    [Gwangju Regional Employment and Labor Office Special Supervision] A fine of KRW 158 million was imposed on 139 cases and the full amount was paid, and action was taken on all 146 action recommendations, including 'Preperation of JSA(Job Safety Analysis)'.

  3. Clarification on the statement, 'In July 21, the media reported a number of industrial accidents, but the company only acknowledged two of them.'

    Industrial accidents are matters that companies disclose only for matters that have been reported and investigated by the government and cannot be partially acknowledged or concealed. If the media reports were true, there would have already been a complaint and action by the Ministry of Employment and Labor, but there are no such records. Every year, we disclose not only industrial accidents that occurred in our direct management, but also industrial accidents that occurred in our partners/affiliates in our sustainability report through verification by a third-party accounting firm.

    The serious disaster that occurred near the Gwangyang Steel Works in May 2021 was determined to be related to 'Hanjin Co., Ltd.' as it was an accident that occurred on a ship unrelated to POSCO's management. Between February and June 2021, there were only two major disasters at POSCO Group. (Constriction accident that occurred at POSCO in February 2021, and constriction accident that occurred at POSCO Future M in March 2021)
We would like to inform you that in 2023, POSCO improved on-site safety management capabilities through 'support activities for the establishment of safety management systems for affiliates' and 'strengthening on-site-led safety management activities'. POSCO, a steel company, achieved Zero fatalities in all its facilities on a consolidated basis.

The Labor Rights Issue at POSCO ASSAN TST in Türkiye

June 30, 2023
Established in 2011 as a joint venture between POSCO and Kibar Holdings, POSCO ASSAN TST (hereinafter TST or the company) stands as Türkiye’s largest cold-rolled stainless steel production corporation. The company’s primary objective is to expand global sales by fulfilling the demand in Türkiye and its neighboring countries, which are experiencing significant growth in steel consumption. TST has consistently achieved annual sales of approximately 200,000 tons. As of late 2022, the company directly employs a workforce of 503 individuals, with 481 stationed at the Izmit plant and the remaining 22 at the Istanbul office.
Guided by the management philosophy of ‘Corporate Citizenship: Building a Better Future Together,’ TST actively invests in training and developing local skilled personnel through industry-university collaborations with Kocaeli University, Ankara University, Istanbul University, and others. Furthermore, the company contributes to local community development by engaging in philanthropic activities, such as donating disaster relief funds and goods to areas affected by earthquakes. POSCO affirms its commitment to universally recognized human rights standards. These include the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the UN Global Compact, the OECD Guidelines for Multinational Enterprises, and the fundamental conventions of the International Labour Organization (ILO). It is important to note that POSCO strictly adheres to the national constitution and labor laws of its head office as well as those governing its overseas subsidiaries. The company is dedicated to upholding and ensuring the rights of its employees, and it publicly discloses a human rights policy that encompasses measures safeguarding the freedom of association, the right to organize, and collective bargaining rights. Nonetheless, the company aspires to sustain open dialogue with its stakeholders through this report, addressing the labor rights issues that arose at TST in 2017.

Origin of the Labor Rights Issue and the Beginning of Two Types of Lawsuits

On November 13, 2017, the Birleşik Metal Workers’ Union (hereinafter Metal Workers’ Union), an industrial labor union in Türkiye, sought approval from the Turkish Ministry of Labor to establish a company union within TST. During the process of expanding the number of its union members, TST believed that employees who were already members of the Metal Workers’ Union engaged in unfair methods to coerce their coworkers into joining. As a result, TST dismissed 69 employees who participated in the misconduct, citing violations of the Turkish Constitution, labor laws, and company bylaws (between November 14-21, 2017). Following their dismissal, each of the 69 dismissed employees (hereinafter the dismissed) individually lodged ‘lawsuits seeking to confirm unfair dismissal’ against the company from November 30, 2017 onwards. On January 2, 2018, the Turkish Ministry of Labor rejected the request to establish the labor union, citing the insufficient number of TST employees in the Birleşik Metal Workers’ Union (union members) to meet the quorum required for forming a union within the company. In response, the following day on January 3, 2018, the Birleşik Metal Workers’ Union filed a ‘lawsuit challenging the denial of company union establishment’ to challenge the ministry’s decision and contest the denial.

Outcome of the ‘Lawsuits Seeking to Confirm Unfair Dismissal’

Two of the 69 dismissed employees withdrew their lawsuits, leaving 67 remaining cases. Throughout the first and second trial (final appeal), TST faced defeat in all 67 lawsuits (concluded in May 2021). As part of the ruling, the court ordered TST to reinstate the unfairly dismissed employees and compensate them with wages for the period from their reinstatement application date until their actual reinstatement (a maximum of 4 months). Additionally, the court mandated the company to provide a year’s worth of salary as labor union compensation to employees who were members of the Metal Workers’ Union at the time of their dismissal. However, TST made the decision not to reinstate the dismissed employees. Article 21 of Türkiye’s Labor Law No. 4857 outlines the ‘Employer’s Discretionary Right over Employment Contracts.’ Under this provision, a corporation isn’t necessarily obligated to reinstate dismissed employees and maintains discretion over reinstatement decisions. Hence, TST concluded that providing monetary compensation for lost employment opportunities due to the dismissal was a more realistic and reasonable approach than reinstatement. In fact, none of the dismissed employees who received compensation requested reinstatement from TST. Rather, beginning in June 2019, they initiated new lawsuits against TST, seeking additional compensation to cover the salary raises and benefits they missed out on during their period of dismissal. A total of 62 new lawsuits were filed, of which 49 have already reached a conclusion, with TST having fulfilled the payment of additional compensation to the associated dismissed employees. As for the remaining 13 lawsuits, the company intends to comply with the decisions handed down by the courts. Furthermore, POSCO has received confirmation from its internal legal affairs team, and a third-party global law firm (GKC Partners, which works in professional association with White & Case), on June 1, 2023, that there are no legal issues concerning TST’s execution of the court ruling and the outcomes thereof. Such confirmation was based on the decision of the Regional Court of Appeals and the verdict of the first instance court in one of the 67 reinstatement lawsuits

Outcome of the ‘Lawsuit Challenging the Denial of Company Union Establishment’

Concerning the ‘lawsuit challenging the denial of company union establishment’ filed by the Birleşik Metal Workers’ Union on January 3, 2018, the Turkish Ministry of Labor ruled in favor of the company in both the first trial(March 2020) and the second trial (April 2021). The ministry determined that the Metal Workers’ Union failed to meet the required quorum for establishing a company union. During this period, the Ministry of Labor calculated the quorum based on the total number of employees at TST’s Izmit plant and Istanbul office. However, in June 2022, the Turkish Supreme Court made a decision that restricted the quorum calculation to only include employees at the Izmit plant. As a result, the Metal Workers’ Union was deemed to have met the quorum requirement. This ruling concluded that the denial of the labor union’s establishment by the ministry was incorrect from the very beginning, thereby concluding the lawsuit with a loss for the company. Following the conclusion of the lawsuit, the Birleşik Metal Workers’ Union started recruiting union members to secure its legal status within TST. They requested the Ministry of Labor to mediate between the union and the company. However, the ministry indicated that it was unable to fulfill this request. Subsequently, the Metal Workers’ Union initiated the recruitment of union members in order to establish a labor union. The union also informed TST of its intention to conduct a general strike on February 24, 2023. However, the union failed to carry out the general strike as planned. Upon verifying the union’s failure to initiate the strike, the Turkish Ministry of Labor determined on March 9, 2023, that the ‘Metal Workers’ Union’s request for approval of a TST company union’ had become invalid. This decision was based on the union’s inability to fulfill the legal procedures and requirements necessary to establish a company union, as outlined in Turkish labor law. The ministry subsequently notified TST about this outcome. Once the Birleşik Metal Workers’ Union fulfills the legal requirements to be recognized as a company union, TST will acknowledge its status as a company union and provide the appropriate treatment associated with that designation

Progression of Key Events

Date Key Events
2017.11.13. Birleşik Metal Workers’ Union submits a request to the Ministry of Labor for approval to establish a company union at POSCO ASSAN TST
2017.11.21. POSCO ASSAN TST dismisses 69 union members who had been coercing other employees to join the union, citing violations of labor laws and company bylaws
2017.11.30. The dismissed union members file ‘lawsuits seeking to confirm unfair dismissal’.
2018.1.2. The Ministry of Labor denies the union’s request for the establishment of a company union
2018.1.3. The union files a ‘lawsuit challenging the denial of company union establishment’.
2021.3.18. Plaintiffs prevail (dismissed union members) in their unfair dismissal lawsuits in the final hearing.
- Court ruling: Reinstatement of the dismissed and payment of union compensation.
2021.5.17. The company completes the payment of compensation to the plaintiffs(dismissed union members).
* Under Turkish Labor Law, even if the court orders for reinstatement, an employer can opt to pay dismissal compensation and not proceed with the reinstatement (a position confirmed as legally sound by a third-party global law firm)
2022.6.18. 'The plaintiff (Birleşik Metal Workers’ Union) wins their ‘lawsuit challenging the denial of company union establishment’ in the final hearing
2023.2.24. The union announces a date for a general strike – a necessary legal procedure for repromoting the establishment of a company union – but the strike is not actually executed
2023.3.8. The Ministry of Labor ultimately reaffirms the ‘loss of validity of the union’s request for company union establishment approval’ (=effectively cancelling the union’s establishment approval)
* Official Document No. E-69772711-553-00013511478 from the Labor Directorate of Kocaeli Province, Turkey
2023.5.31. After receiving their dismissal compensation, the dismissed union members file a new lawsuit against the company, demanding additional compensation to account for wage raises that occurred during the period from their dismissal to the final judgment confirmation. Of the 62 additional lawsuits filed, 49 have already been concluded, and the company plans to abide by the rulings for the remaining 13 cases once verdicts are reached

Due Diligence Results of ‘POSCO ASSAN TST ESG Management’ by a ThirdParty Assurance Firm

In April 2023, TST took the incident as an opportunity to commission global ESG assurance firm Intertek, based in the UK, to conduct an assurance assessment. The objective was to identify areas for improvement in the domains of labor and human rights, ensuring the prevention of similar issues in the future. The assurance process encompassed five key areas: labor, wage and work hours, safety and health, management systems, and working conditions. Based on the assessment results, TST achieved an overall score of 97 and a perfect score of 100 specifically in the labor field. Intertek recognized TST for its high level of awareness regarding labor rights and compliance with relevant laws and regulations. The assessment confirmed that TST upholds the freedom of assembly and the right to organize, while also highlighting that the company has never engaged in retaliatory actions such as unfair disciplinary measures against employees who engage in justifiable actions like whistleblowing against misconduct.

Activities Promoting Trust and Communication between Labor and Management

Instead of a company union, TST maintains a representative body of employees that is selected through employee votes. According to the law, the body should consist of three employee representatives and collaborate with management in a consultative group semiannually. However, TST has four employees representatives and twenty support personnel to actively seek and consider employee opinions. Additionally, the company has established a consultative body that meets quarterly, with the president personally overseeing it to enhance decision-making and ensure enforcement of discussed matters. Recently, at the request of the representative body, TST held a ‘Labor-Management Harmony Sports Day’ and a ‘Safety Pledge Contest’ involving all employees. The local press even covered these events and coined them as excellent examples for companies to emulate.

Future plans for improving labor and human rights

POSCO is currently re-evaluating the human rights policies of its 39 overseas subsidiaries. The company will provide employees with training on human rights in local languages and share its human rights policies on its website. Also, through the POSCO Human Rights Due Diligence System developed in the first half of 2023, POSCO plans to conduct annual online audits for all overseas subsidiaries. If any issues are identified through these audits, in-house experts will be dispatched to provide necessary improvements. In addition, the company has implemented a procedure where resident staff in overseas subsidiaries promptly reports any potential labor and human rights issues to the relevant department at headquarters. Moving forward, the company aims to strengthen its collaborative system between headquarters and overseas subsidiaries to proactively prevent and resolve any arising issues.

Statement on ISS Inquiries about Safety & Health

('23.2Q) May 31, 2023
POSCO is establishing a safety management system at its workplace together with labor and management based on the audit results of an independent third-party organization.

In the first quarter of 2023, POSCO sent ISS ESG information on the status of POSCO's safety activities and the reduction of major accidents. And in the second quarter of 2023, ISS ESG sent POSCO questions about the related content. The main questions from ISS ESG were 'the contents of the audit of POSCO's safety activities by an independent third-party organization' and 'POSCO's safety monitoring plan' related to the reduction of the number of accidents. POSCO responded to the questions as follows and will continue to communicate with stakeholders..

1.Have you commissioned an independent third-party audit into the efficacy of your existing safety measures in terms of reduction in fatalities and reduction in the number of injured employees? If so, could you share the findings and any improvements implemented in response to the audit?

- POSCO was audited for its safety activities by the 'Korea Industrial Safety Association' from September 2021 to October 2021.
- The Korea Industrial Safety Association said, "POSCO's safety activities to respond to changes in the internal and external environment, such as strengthening safety laws and change social awareness, and to prevent major accidents, are judged to be appropriate
- The safety organization system and manpower reinforcement, implementation of six major safety measures, inspection of harmful risks with the participation of all employees, including related subcontractors, and support for strengthening safety capabilities of partner companies are very excellent."
- In addition, by presenting opinions on "process-oriented safety index operation" rather than result-oriented ones and "establishment of an integrated safety management platform", POSCO newly established 'Process-oriented Indicators' such as Safety rule compliance index' and 'Hazard?Risk improvement ratio' and POSCO is also comprehensively improving the company's safety monitoring system by forming an integrated safety and health platform development TF.

2. Could you share details of your company's safety monitoring plans?


Real-time monitoring of on-site work status : According to the audit results of the above independent organizations, POSCO is managing the work status, which was previously managed using Excel, with the new integrated safety management platform 'Comprehensive Monitoring System for Working Status at Steelworks' (from November 2021). The above system developed by POSCO provides real-time information such as risk information for each task, worker status for each location, and employee participation status including related subcontractors. In addition, it is a safety management system that can prevent safety accidents in advance by allowing any direct management/subcontractor personnel involved in on-site work at the steelworks to check all elements necessary for safety in real time before each work begins.

- Establishment of a safety culture in which labor and management discuss together by each department level.
[Plant Level] 'Joint Labor-Management Committee' conducts POSCO-supplier safety discussions to share unsafe conditions/behaviors found at each plant to derive improvement measures. (weekly basis)
[Steelwork Level] 'Occupational Safety and Health Committee' is attended by 10 company representatives including the head of the steelwork, and 10 employee representatives to share and discuss legal issues and on-site VOCs. (quarterly basis)
[Company-wide Level] 'Safety Innovation Committee', chaired by the CEO and attended by both labor and management including representatives of the POSCO labor union and suppliers, is operated to share major safety and health activities and issues for each quarter at the company-wide level. A separate time is set aside for employee representatives attending the meeting, including labor union representatives, to express their views in front of all attendees, including the CEO. (quarterly basis)
As before, at the 'Board Meeting', POSCO conducts preliminary reviews on safety plans and checks progress and issues (monthly). And at the 'Company Management Meeting', POSCO checks safety risks and implementation status of safety improvement at business sites (monthly).

Statement on MSCI, ISS’s Inquiries Safety & Health

('23.1Q) April 12, 2023
In the first quarter of 2023, MSCI and ISS wrote a report on POSCO’s ESG management status and sent the report to POSCO. The main questions in the report are ‘POSCO’s activities for effective accident prevention’ and ‘POSCO’s position on safety accidents disclosed to the media’. POSCO will respond to the relevant issues as follows and will continue to communicate with stakeholders..

  1. 1. POSCO’s activities for effective accident prevention

    1. Establishment of POSCO Safety and Health Management System

      Based on the global advanced safety management system and core elements of the statutory safety and health management system, POSCO is operating the ‘Safety and Health Management System1)’ specialized in the steel industry and POSCO. This was introduced as a model case at the ‘Safety and Health Leaders Meeting in Steel Industry’ hosted by the Ministry of Employment and Labor in August 2022. Vice Chairman Hag-dong Kim said, “We are attempting a great transition to a safety-first oriented culture from a production-centered culture that has been deeply rooted for more than half a century since our foundation, and we will strive to create an environment where everyone working in the field, including contractors, can work safely.” 포스코는 글로벌 선진 안전관리시스템과 법정 안전보건 관리체계 핵심 요소를 기반으로 하여, ‘안전보건 관리체계’를 철강업과 포스코에 특화 1) Safety and Health Management System : Workplace safety management items such as the Executive’s Commitment and Objective, Management of Contractors, and Accident Investigation and Management, are classified to 9 core elements
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    2. Development of the ‘Smart Safety Ball’ to prevent suffocation in confined spaces

      In addition, we are actively supporting the workplace with sufficient budget and manpower to immediately remove risk factors at the workplace. POSCO was recognized for excellence in Process Safety Management by worldsteel’s ‘Safety and Health Excellence Recognition’ in October 2022. POSCO’s developed a micro-throwable gas detector called “Smart Safety Ball” to prevent suffocation in confined spaces.
      Detailed Award Information

      • Smart Safety Ball

        It is a tool that can detect the presence of harmful gases in a confined space in advance. It is expected to be of great help in preventing accidents by throwing a smart safety ball into the space first before work and directly measuring the gas concentration.

      • Close-up view of Smart Safety Ball

        With a diameter of 60 mm and a weight of 100 g, it is similar in size to a tennis ball. It is possible to determine the concentration of three gases: oxygen, carbon monoxide and hydrogen sulfide. The measured value can be checked in real time with a related application on a smartphone or tablet PC, and location information is delivered to pre-registered colleagues and managers when risk levels are measured..

    3. Prevention of constriction and height accidents using AI/deep learning and new materials

      In October 2022, POSCO won the Minister of Public Administration and Security award by developing the ‘Automatic Stop Technology for Forklifts’ by using AI/deep learning technology. The system automatically stops when a person approaches the forklift.
      Detailed Award Information

      The system won the Minister of Public Administration and Security Award. In June 2022, POSCO developed ‘Shear-Resistant Safety Straps2)' using reinforced fibers that are 15 times stronger than steel and 30% lighter than nylon, to preventing falls when working at heights.
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      2)Shear-Resistant Safety Strap : A safety strap that can withstand up to 70 minutes without being cut even if friction occurs with sharp surrounding structures after a fall
      Demonstration of Automatic Stop Technology for Forklifts (POSCO Exhibition Booth View at ‘K-Safety EXPO 2022’)
      ※ For work safety management in the steelworks, a worker is tagging a pass on the manager’s smartphone before starting work.

    4. Establishment of a safety-first culture in the workplace and improvement of safety mindset of contractors.

      In order to shift our core values from a production-oriented culture to a safety-first culture, we have been operating the TRIFR3) prevention index since July 2022 to even manage small accidents in the workplace. And since January 2021, we have established/operated a ‘Safety Reporting System’ where anyone can report any unsafe work conditions and/or operations at the site and are establishing safety plans that reflect the vivid voices of the field
      3)TRIFR (Total Recordable Injury Frequency Rate): We prevent major accidents by even considering small accidents that do not need a break period

      In particular, safety management is being strengthened by securing safety training and rest conditions for subcontractors who are half of the number of people entering the steelworks but are in the blind spot of safety management. Since November 2021, we have operated a ‘Safety Bus’ equipped with VR equipment and training aids to improve safety training conditions for subcontractors who have difficulty visiting the training center.
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      In addition, since July 2022, we have been using the modular construction method to create a ‘Safe Shelter’ on site to improve rest conditions for field workers who do not have a resting area.
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      • Safety Bus

        For subcontractors who did not have enough time and opportunity to take safety training, we operated 'Safety Bus' to support subcontractors to take training at the time and place they want. We share materials related to education such as safety UCC.

      • Flood restoration of Pohang Steelworks

        POSCO experienced a natural disaster that flooded the steelworks, but miraculously succeeded in normalizing the facilities through the 'sweat, determination and dedication of the employees', 'help from the public, government and military', and 'citizens' support'.

    5. Others: Reorganization of the safety organization and securing objectivity in safety activities, etc.

      In 2021, the 'Safety Health Environment Division' was newly established as an organization directly under the CEO, and safety and health-related matters are being systematically managed. In addition, by operating the 'Safety and Environment Committee' presided over by the CEO and participated by labor and management, we are strengthening the review process and analysis of safety activities, prompt decision-making, and interactive communication. In addition, the 'Safety Advisory Committee', in which external safety experts from academia and specialized organizations participate, has been operating since May 2022 to establish a system to objectively evaluate the status of safety assurance.

    6. Performance of safety management in the workplace

      As a result of the above efforts, the number of severe accident victims at POSCO is on the decline (5 in 2020 → 1 in 2022). When the Pohang Steelworks was flooded by Typhoon Hinnamnor in September of 2022, the CEO held a ‘Safety Process Meeting’ twice a day and 27 safety guidelines were created and distributed to establish a system to respond to safety accidents at an early stage. In the end, restoration was completed in 135 days without a single major disaster.
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  2. 2. POSCO’s position of the safety accident disclosed to the media.

    The accidents below are incorrectly marked as POSCO disaster details even though they are not POSCO's disaster details, so we will correct them.
    1. Fall of a worker at a waste disposal site on the east cliff, Gwangyang (Sep. 2022).
      ⇒ The company involved is neither POSCO/POSCO Group company nor its trading partner. Therefore, the accident has nothing to do with POSCO's injury statistics
    2. Fall of a worker at the demolition site within the SNG facility in Gwangyang (Apr. 2022)
      ⇒ The facility, once owned by POSCO, was sold to a third party in 2021, and the demolition of the facility was sole responsibility of the third party and is irrelevant to POSCO's injury statistics
    3. Hitting of a worker while unloading coal at a port near the Gwangyang Steel Mill (May 2021).
      ⇒ The worker was employed by the Port Labor Union and is irrelevant to POSCO’s injury statistics