KakaoBank(323410) Labor and management failed to narrow differences over performance bonuses and the annual salary increase rate, leading to a breakdown in wage and collective bargaining talks. This increases the likelihood that KakaoBank will also join the general strike led by the headquarters.
On the 21st, a compilation of reporting by ChosunBiz found that KakaoBank labor and management held mediation the previous day at the Gyeonggi Regional Labor Relations Commission but halted it. Going forward, the KakaoBank labor union can decide whether to strike after a vote on industrial action.
A KakaoBank union official said, "Differences were not narrowed on overall bargaining terms, including performance bonuses and the annual salary increase rate." According to the industry, management proposed paying performance bonuses at about 10% of operating profit by combining cash and treasury shares, but the union demanded more. Talks on the annual salary increase rate proceeded around the high-6% range, but the sides reportedly failed to close the gap.
The Korean Confederation of Trade Unions (KCTU) National Chemical Fiber Food Industry Labor Union Kakao Chapter (Crew Union) will hold a picket protest at noon at Kakao Azit in Pangyo, Seongnam, Gyeonggi. The picket protest will be held with voluntary participation by members, and some KakaoBank members are expected to join.
The Kakao union is demanding higher performance bonuses after the company posted strong results. Kakao recorded 1.9421 trillion won in revenue and 211.4 billion won in operating profit in the first quarter this year. Both revenue and operating profit were the highest for any first quarter. Kakao Pay posted 32.2 billion won in net profit, and KakaoBank logged 187.3 billion won in the first quarter. Both were quarterly records.