SEOUL, Dec. 2 (Yonhap) -- POSCO Group said Sunday its five affiliates will provide 777 billion won (US$693 million) over five years to help improve working conditions in their subcontractors.
From 2019 to 2023, POSCO, POSCO Engineering & Construction Co., POSCO ICT, POSCO Chemtech, and POSCO Energy will use the funds not only to help narrow a significant salary gap between them and their subcontractors but to also improve their working conditions, POSCO said in a statement.
Over the five years, the POSCO affiliates will operate a set of programs to help subcontractors achieve stronger earnings results, develop technologies, build a high-tech plant and enhance safety management, it said.
"If the subcontractors come up with any tangible results, the POSCO affiliates will be able to purchase their products at higher prices or financial support will be given in the form of incentives," a company spokesman explained.
POSCO is the world's fifth-biggest steelmaker by output.
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