Labor unions in the financial sector are clashing with management and the government, raising the likelihood of large-scale action. One side is pushing for higher wages and bonuses, while the other is taking action over whether to proceed with a regional transfer. In the industry, there are forecasts that the general strike by financial unions last year could be repeated this year.
According to the financial sector on the 25th, the wage and collective bargaining (wage and collective agreement talks) between the Korean Federation of Trade Unions-affiliated National Financial Industry Labor Union (financial union) and the Financial Industry Employers' Council is at a standstill. The financial union demanded a 6% wage increase and a 4.5-day workweek without wage cuts, but management proposed a 2.5% increase.
The second round of mediation at the Central Labor Relations Commission is currently deadlocked. The financial union plans to carry out small-scale industrial action while considering a general strike. A financial union official said, "If we hold a strike vote, we can move into a general strike, but we have not set a voting schedule yet. We will start with one-person protests and gradually escalate the level of action, and if there is no progress in negotiations, we can move into a general strike."
The financial union launched a general strike last September after final talks with management collapsed. About 8,000 headquarters employees of the four banks KB Kookmin, Hana, Woori and NH NongHyup held a rally near Gwanghwamun Intersection in Jongno District, Seoul. At the time, the union called for a 7.1% wage increase, management proposed 1.5%, and the two sides ultimately agreed to a 3.1% increase.
On the Korean Confederation of Trade Unions (KCTU) side, Kakao Pay·KakaoBank, among Kakao's financial affiliates, are in dispute with management. Kakao Pay has engaged in collective action since last month, and KakaoBank, after a seven-month tug-of-war, saw wage and collective agreement talks finally break down and is set to join the action. It is the first strike to take place at an internet-only bank without branches. They are demanding performance bonuses equivalent to at least 10% of operating profit and a late-6% range increase in annual pay.
The financial union's NH NongHyup chapter is waging a fight against regional transfer. As the National Agricultural Cooperative Federation and its affiliates emerged as strong candidates among the major targets of regional transfer for financial institutions pushed by the government, they are taking action. Recently, they held rallies against regional transfer in front of the Ministry of Land, Infrastructure and Transport and near Gwanghwamun. In August, they have signaled even larger-scale collective action.
The National Federation of Fisheries Cooperatives is also taking part in the fight against regional transfer. Depending on how things develop, state-run banks may also join. A financial industry official said, "Summer actions could unfold on a much larger scale than last year."