The Korea Financial Industry Union, the umbrella group for bank labor unions, put forward an 8% wage increase and the introduction of a 4.5‑day workweek without pay cuts as items for this year's industrywide central bargaining. The union held a general strike last year demanding a 4.5‑day workweek.

According to the financial sector on the 15th, management representing banks and the union recently held an initial meeting for this year's wage negotiations. The two sides will hold main talks on May 27 and begin full‑fledged negotiations. Taking into account the economic growth forecast (2%), the consumer price inflation forecast (2.2%), and the decline in real wages over the past five years (3.8%), the union proposed an 8% wage increase.

Members of the Korean Financial Industry Union chant slogans calling for a 4.5-day workweek and wage increases at a general strike rally in Jongno-gu, Seoul, on September 26 last year. /Courtesy of News1

As industrywide bargaining demands, the union proposed: ▲ shorter working hours, including introducing a 4.5‑day workweek without pay cuts ▲ extending the retirement age to 65 and abolishing the wage‑peak system ▲ blocking the transfer of headquarters to regional areas. The union's position is to secure the 4.5‑day workweek this year. The transfer of public institutions to regional areas is also a core agenda item. As the government recently reviewed transferring public institutions to regional areas, financial public institutions are pushing back. The union formed a task force (TF) and is responding to the transfer of financial public institutions to regional areas.

At the meeting with the union, management was said to have emphasized that internal and external economic uncertainties have grown.

In recent years, the union has maintained a strategy of proposing high wage increases and shorter working hours and moving toward a strike if management does not accept them. In September last year, it carried out a general strike. With an 8% wage increase proposed again this year, tough labor‑management talks are expected.

The average annual salary of executives and employees at the four major banks—Kookmin, Shinhan, Hana, and Woori—was tallied at 122.75 million won last year. That was up 4.75 million won (4.03%) from the previous year (118 million won).

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