Members of the Korean Metal Workers' Union chant in front of the Supreme Court in Seoul, April 16, urging POSCO to ensure equal treatment of subcontracted workers at its steelmaking plants. Yonhap

The ruling Democratic Party of Korea (DPK) has begun voicing concerns over POSCO's plan to directly hire around 7,000 subcontracted workers performing manual labor at its plants in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province.

With the plan drawing severe backlash from both regular and subcontracted workers, the shift in political sentiment is adding pressure on the steelmaker ahead of the June 3 local elections.

The election campaign of Min Hyung-bae, the DPK candidate for the proposed South Jeolla-Gwangju integrated special city, issued a statement denouncing POSCO's plan as an attempt to sidestep repeated Supreme Court rulings ordering the company to ensure equal treatment of subcontracted workers, who are under its supervision and perform similar duties to regular employees.

The criticism comes as it was revealed that POSCO plans to classify newly hired workers separately and pay them about 60 percent of existing employees' wages.

"The Ministry of Employment and Labor should investigate the matter and take firm action against any legal violations," the campaign said Wednesday.

POSCO CEO Lee Hee-geun, right, talks with Rep. Jung Chung-rae, chairman of the Democratic Party of Korea, at the steelmaker's plant in Gwangyang, South Jeolla Province, April 9. Yonhap

When POSCO announced April 7 that it would directly hire subcontracted workers, the move was broadly welcomed by the government and the ruling party, as well as the main opposition People Power Party (PPP).

"I would like to publicly commend POSCO for aligning with the government's policy direction," Rep. Jung Chung-rae, chairman of the DPK, said during a visit to the company's Gwangyang plant on April 9.

PPP lawmakers representing districts in Pohang also welcomed the decision.

Source: Korea Times News