Rebellion against relocation of state-run banks to local regions
Kabang’s absence from in-house conference
Labor-management conflicts in the banking sector are spreading to strikes. The level of conflict seems to be increasing as the issue of financial institutions relocating to the provinces is added to issues such as wage increases and performance compensation.
Financial Workers’ Union Announced General Strike on Sept. 4…Gathering of state-run banks
사진 확대 Participating members shout slogans at a joint rally against local relocation held by the Korea Development Bank, IBK Industrial Bank of Korea, and Export-Import Bank of Korea in front of the Korea Development Bank headquarters in Yeouido, Seoul on the 11th. Photo = Yonhap News
According to the financial sector on the 14th, the Korean Financial Industry Workers’ Union is scheduled to hold a general strike rally on Sejong-daero in Gwanghwamun, Seoul on the 4th of next month. Prior to this, the financial union will also hold a resolution meeting in Yeouido, Seoul, on the 28th. 68,878 members participated in the vote for and against the industrial action conducted by the financial union, of which 66,154 approved. The approval rate is 96.1 percent.
Since April, the financial union and the user have held 18 industry-specific negotiations, including delegation and working-level negotiations, but they finally broke down in June. Since then, the National Labor Relations Commission has failed to narrow the gap in its stance, and the decision to suspend the adjustment has been made, making the financial union legally required to engage in industrial action.
The financial union is calling for the introduction of a 4.5-day week system, a real wage increase, an extension of the retirement age, the abolition of the wage peak system, and the suspension of financial institutions’ relocation to the provinces. The wage increase demand rate was lowered from 8% to 6%, but the user reportedly proposed a 2.5% increase.
The government’s push to relocate secondary public institutions, including three state-run banks (Korea Industry, IBK Company, and Export-Import Bank of Korea), has also emerged as a major source of conflict in negotiations. A union official said, “If key financial institutions are mechanically dispersed indiscriminately, it will inevitably have adverse effects on securing professional manpower, cooperation between institutions, and the ability to carry out policy finance.”
The financial union includes 42 branches of public and related financial institutions, including the Korea Credit Guarantee Fund, the Korea Asset Management Corporation, the Korea Housing Finance Corporation, and the Korea Financial Telecommunications & Clearings Institute, as well as commercial and local banks and state-run banks. In the future, the size of the actual strike participation and whether each institution will be disrupted are considered major concerns.
Cabin union goes on strike for second time…Conflict of performance pay continues
사진 확대 Members of the Kakao union are picking up tickets at the Kakao Bank headquarters in Pangyo on the 21st of last month, calling for sincere negotiations over the conflict with the management over the incentive compensation system. Photo = News 1
Internet banks are also moving to strike. On this day, the Kakao Bank union will go on strike for a second time. It has been 15 days since the first strike on the 31st of last month.
The Kakao branch of the National Chemical Textile Food Industry Labor Union argues that the company promotes its employees’ technical achievements and collaboration results as a technology culture, but does not come up with a practical alternative to the demands for wage increases and compensation from the members who have made it. Initially, the union demanded a bonus payment worth 10 million won, or 13-14% of operating profit, but the management says it is difficult to accept it due to the management burden.
The Kakao Bank union set the strike date for the hosting of Kakao Bank’s annual in-house technology conference, “Code Runner.” Code Runner is an in-house event where Kakao Bank members share the latest technology experience and knowledge, and executives and employees directly participate in presentations and program planning and operation. The union plans to send a warning message on the issue of performance compensation by not attending events that symbolize the company’s technology and organizational culture.
Earlier on the 31st of last month, about 700 employees of the Kakao Bank union held their first strike and the first in-bang strike since its launch. Since then, as the gap between labor and management has not narrowed, the union has started a struggle for compliance since midnight on the 12th. If the demand is not accepted even after the second strike on the 14th, it is also considering raising the level of disputes, including additional and continuous strikes.
Seo Seung-wook, chairman of Kakao Group, said, “We will not stop acting until the company properly respects the labor and performance of its members and presents practical negotiations.” Kakao Bank is determined to operate a response system to minimize customer inconvenience while continuing dialogue with the union for an early agreement.