Tongyang Life Insurance and ABL Life Insurance will launch a new chief executive officer (CEO) system in July, completing the process of being incorporated into Woori Financial Group, but labor-management conflicts continue. The Tongyang and ABL Life Insurance union applied for mediation to the Seoul Regional Labor Relations Commission, demanding job succession and the payment of consolation money. The union noted that it has secured the legal right to strike and is willing to go to a general strike.
According to the financial sector on the 19th, the Seoul Regional Labor Relations Commission held a mediation meeting regarding the dispute filed by the Tongyang Life Insurance and ABL Life Insurance unions. If the commission decides to suspend mediation, judging that it is difficult to reach an agreement between labor and management, the Tongyang and ABL Life Insurance unions will legally secure the right to strike. The unions applied for mediation to the commission on the 9th.
The union claims that job security and the payment of consolation money have not been discussed during the sale process. The union is demanding a specific promise regarding job succession and consolation money amounting to 1,200% of the base salary. However, Woori Financial is in a position where it is difficult to negotiate with the union as the acquisition has not yet been finalized.
The union is reportedly planning to conduct a general strike if it secures the right to strike. This presents a significant hurdle for Woori Financial, which is on the verge of completing the acquisition of Tongyang and ABL Life Insurance.
Woori Financial is accelerating the incorporation process of Tongyang and ABL Life Insurance after receiving conditional approval from financial authorities last month. Tongyang Life Insurance will hold a shareholders' meeting on the 1st of next month to officially appoint a new CEO. Tongyang Life Insurance has nominated Sung Dae-kyu, former CEO of Shinhan Life, while ABL Life Insurance has chosen Kwak Hee-pil, former vice president of Shinhan Life, as its new representative director.
Woori Financial plans to make the final payment to China Multinational Insurance Group and acquire shares of both companies in conjunction with the shareholders' meeting. This will effectively finalize the incorporation process into Woori Financial. The new CEOs are expected to meet with the union and discuss jobs after taking office.
An industry source said, "I understand that the consolation money for employees due to corporate sales is typically the responsibility of the seller rather than the acquirer."