In 2017, approximately 80 workers at POSCO’s facility in Turkey were dismissed amid efforts to organize under the Birleşik Metal İş union, an IndustriALL Global and industriAll European Trade Union affiliate. Turkish courts later ruled unequivocally that these dismissals were due to the workers’ union activities—a violation of both Turkish labour laws and international labour conventions. The courts awarded union indemnity to the dismissed workers, highlighting the injustice.
Despite this, POSCO misrepresents the situation in its ESG narrative. The company asserts that dismissed workers declined reinstatement, yet evidence shows the opposite. After winning their court cases, workers applied for reinstatement, only to have their requests denied by the company.
In 2022, the Supreme Court confirmed Birleşik Metal İş as the official union for POSCO’s workers, a decision reinforced by the ministry of labour, which issued an Authorization Certificate compelling the company to engage in collective bargaining. On November 4, 2022, the union formally called on POSCO to begin negotiations, but the company remained unresponsive.
When the ministry of labour stepped in, organizing a meeting on November 24, 2022, POSCO again failed to attend. Under Turkish law, such noncompliance triggers mandatory mediation. Yet even this process was stonewalled by the company. The appointed mediator, Yusuf Bayraktutan, confirmed POSCO’s refusal to participate in any meetings, leaving the collective bargaining process in limbo.
After the court proceedings were finalized, Birleşik Metal İş started the collective bargaining process but company never repliedwhich resulted in the union losing its certificate in the workplace in 2023.
POSCO’s ESG report claims a commitment to engaging with labour unions, yet its actions tell a different story. The report states that “employee representatives” have replaced unions, a move that directly contravenes Turkish labour laws and International Labour Organization (ILO) conventions, which affirm that genuine union representation cannot be substituted.
Further, POSCO falsely asserts that it could not engage with a union due to the absence of an official body. This claim is contradicted by the recognition of Birleşik Metal İş as the legitimate union following the court rulings. Despite calls from the union, Turkish authorities, and legal mandates, the company has persistently refused to acknowledge the union or initiate dialogue.
Last year IndustriALL and industriAll Europe called on the board of directors to effectively implement the Human Rights Management Guidelines to recognize Birleşik Metal İş as the collective bargaining agent and engage in good faith negotiations as required by the court ruiling.
Kemal Özkan, IndustriALL assistant general secretary says:
“POSCO has a global track record of union busting which contradicts its own due diligence principles. The dishonesty shown in the company’s response to the case in Turkey should alarm investors: this is a company that is prepared to break the law to undermine trade unions, and then lie about it. POSCO should come to the table and engage in good faith.”
Judith Kirton-Darling industriAll Europe’s general secretary said,
“The level of truth-twisting and union busting displayed by POSCO’s management is disgraceful. Birleşik Metal İş and POSCO’s workers have been forced to jump through every legal hoop to ensure the most basic of human rights: to organize and collectively bargain. It’s time for POSCO to behave responsibly in Turkey. industriAll Europe will continue to scrutinize and challenge any attacks on our members, using all levers at our disposal.”
POSCO’s claims of worker engagement and ethical labour practices ring hollow against the backdrop of its actions in Turkey. This case is not just a local issue but a test of the company’s global commitment to ESG principles. For POSCO, the path forward is clear: genuine dialogue, respect for labor rights, and a commitment to transparency. Anything less is a betrayal of the values it purports to uphold.
