POSCO Argentina (hereinafter referred to as POSCO), a lithium mining subsidiary of POSCO Holdings located in Güemes, Salta Province, Argentina, is facing a general strike by local mine workers due to a dispute over the alleged non-compliance with a wage agreement. The Argentine Mining Workers' Association (AOMA) claims that POSCO unilaterally breached a previously signed wage agreement and has initiated a strong protest, halting the operation of the plant. In contrast, POSCO Holdings maintains that the plant is operating normally and that it is faithfully implementing the wage negotiation agreement reached last February, indicating a lack of resolution to the situation.
According to a report by the Argentine local media 'AriesOnLine' on April 8th (local time), all production activities at the POSCO Güemes plant have been halted due to the strike led by AOMA. Eduardo Gerónimo, Secretary-General of AOMA, stated in an interview with the media, "This strike was inevitably carried out because the company did not fulfill the agreed wage increase promise." He added that they had previously gone on strike over wage issues and had complied with all legal procedures under the government's mandatory conciliation order at that time.
According to Secretary-General Gerónimo's claims, an agreement including wage increases for mine workers in the Güemes and Puna regions was reached on the last day of the government's mandatory conciliation. However, POSCO allegedly unilaterally notified them just one week after the agreement that "the agreed amount cannot be paid." In response, Secretary-General Gerónimo strongly criticized POSCO's lack of communication and respect for workers, stating, "It is difficult to understand the behavior of emphasizing coexistence with the local community when building a new salt lake project plant, yet not keeping even basic promises with workers." He also expressed anger, claiming that POSCO is refusing to even talk with not only regular employees but also outsourced workers.
AOMA stated that they are currently holding protests to halt plant operations but are refraining from extreme actions such as physical clashes or plant blockades, urging a peaceful resolution to the situation. Secretary-General Gerónimo mentioned, "We are waiting for POSCO to come to the site, have a sincere dialogue, and propose a reasonable solution," leaving room for negotiation. He warned, "The union never decides to strike impulsively and always prioritizes dialogue, but if workers' basic rights such as wages and working conditions are not respected, we will inevitably have to respond strongly."
The strike at the POSCO mine is drawing further attention as it occurred amidst changes in the local economic environment, such as the Salta provincial government increasing mining royalties compared to other mining production areas. This incident is seen as a manifestation of the deep-rooted conflict between foreign-invested mining companies and local workers, raising fundamental questions about the importance of labor-management relations and the reliability of agreement implementation throughout the Argentine mining industry. AOMA is maintaining a firm stance that they will not stop the strike until the agreed wage agreement is faithfully implemented, suggesting the possibility of a prolonged situation.
Meanwhile, POSCO Holdings has directly refuted the strike reports, expressing a conflicting position. A POSCO Holdings official stated, "The Güemes plant is currently operating normally, and the general strike claimed by AOMA is not true." They also emphasized, "The wage negotiation agreement amicably reached with the labor union last February is currently being implemented smoothly without any issues," denying the claims of non-compliance with the wage agreement.
As the positions of POSCO and the labor union sharply contrast, local media and labor circles are closely monitoring the developments of this situation and paying attention to the potential impact on labor-management relations in the Argentine mining sector. In particular, with the increasing importance of key minerals such as lithium, the POSCO strike controversy is being evaluated as a renewed emphasis on how crucial trust-building and a mutually respectful labor culture are between foreign investment companies and local workers. Concerns are being raised that if the differences between the two sides are not narrowed, it could lead to prolonged production disruptions as well as damage to the company's image and negative impacts on attracting investment. The focus is now on whether constructive dialogue and compromise between POSCO and AOMA can lead to a swift resolution of the issue.
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