There are signs that labor-management conflicts over bonuses and wages, sparked by Samsung Electronics, are spreading to the financial sector. The Financial Industry Labor Union, the umbrella group for bank labor unions, recently argued in wage talks with management that "sharing corporate performance with workers is a social demand," citing the Samsung Electronics case, according to reports. Attention is on whether the union's demands will lead to a sectorwide bank strike.
According to the financial sector on the 3rd, the Financial Industry Labor Union recently held the second round of industry-level central bargaining with the employer side, which consists of bank executives. At the meeting, the union told management, "As discussions on distributing performance continue at major corporations based on strong operating profits, financial workers are also raising serious concerns. Since the financial industry is likewise generating huge profits, the contributions of the workers who produced those results must be properly reflected in wages."
The union also said, "Management has repeatedly urged caution on the grounds of a social perception and mood that financial workers' wages are relatively high, but recently there has been a growing social demand that workers in profitable industries should fairly share in those results." This is seen as a remark with the "operating profit N% bonus" cases triggered by Samsung Electronics and SK hynix in mind.
The union proposed an 8% wage increase to management this year. It said the rate reflects forecasts for economic growth (2%) and consumer price inflation (2.2%), along with the decline in real wages over the past five years (3.8%). The union is also demanding a 4.5-day workweek without wage cuts, an extension of the retirement age to 65, and the abolition of the wage peak system.
In recent years, the union has stuck to a strategy of proposing high wage increases and shorter working hours, and moving to strike procedures if management does not accept them. The union held an actual general strike in Sep. last year.
Management reportedly rejected the union's proposed wage increase, saying, "Internal and external uncertainties persist, including heightened Middle East geopolitical risks, expanded volatility in U.S. tariff policy, interest rates, and exchange rates, increased household and corporations debt burdens, and concerns over rising credit losses." It also says introducing a 4.5-day workweek requires public discussion.
The average annual salary of executives and employees at the four major banks—KB 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).