Labor-management conflict over performance bonuses and wages, sparked by Samsung Electronics, appears to be spreading to the financial sector. Recently, the Korea Finance Industry Union, the umbrella group for bank labor unions, reportedly argued in wage talks with management that "sharing corporate performance with workers is a social demand," citing the Samsung Electronics case. Attention is on whether the union's demands will lead to a general strike in the banking sector.
According to the financial sector on the 3rd, the union recently held a second industry-level central negotiation with the employer side, which is made up of bank executives. At the meeting, the union told management, "As discussions on distributing performance continue at major corporations based on high operating profits, financial workers are also raising strong concerns. As the financial industry is likewise posting massive profits, the contributions of the workers who created those results must be properly reflected in wages," it said.
The union also said, "Management has repeatedly taken a cautious stance, citing the social perception and atmosphere that financial workers' wage levels are relatively high, but recently there has been a growing social demand that workers in profitable industries should fairly share in the results." This is seen as a remark with the "operating profit N% performance bonus" cases triggered by Samsung Electronics and SK hynix in mind.
The union proposed an 8% wage increase to management this year. The union said the rate reflects forecasts for economic growth (2%) and consumer price inflation (2.2%), as well as the decline in real wages over the past five years (3.8%). The union is also demanding the introduction of a 4.5-day workweek without wage cuts, extending the retirement age to 65, and abolishing the wage-peak system.
In recent years, the union has maintained a strategy of proposing high wage hikes and shorter working hours and initiating strike procedures if management does not accept them. The union held an actual general strike in Sep. last year.
Regarding the wage increase rate proposed by the union, management reportedly took an unacceptable stance, saying, "Domestic and external uncertainties persist, including heightened Middle East–origin geopolitical risks, expanded volatility in U.S. tariff policy, interest rates and exchange rates, increased household and corporations' debt burdens, and concerns about rising credit losses." It also said the introduction of 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).