KakaoBank(323410) is going on strike as labor-management tensions intensify. KakaoBank labor and management did not hold a single bargaining session for about two weeks after mediation for the wage and collective agreement (wage and collective bargaining) broke down. This contrasts with Kakao headquarters and its affiliates, which entered strikes earlier but wrapped up labor disputes by producing tentative agreements on wage and collective bargaining.
According to the KakaoBank union on the 31st, it is estimated that about 700 of roughly 1,000 members went on strike that day. The strike takes the form of a "logout day," in which union members use annual leave and step away from work. It is the first strike in the sector since internet-only banks launched in 2017.
KakaoBank labor and management bargained over wage and collective bargaining for about seven months starting in January this year, but talks finally collapsed when the mediation process held at the Gyeonggi Regional Labor Relations Commission on the 20th was halted. Since then, bargaining between labor and management has been suspended.
KakaoBank said, "The company will continue to work to find an amicable solution through dialogue." However, the union claims, "Since management unilaterally canceled bargaining, there has been no progress to date."
Even if mediation fails, wage and collective bargaining must be wrapped up, so it is common for labor and management to continue bargaining regardless of a strike. Industry officials also note, "It is not common for bargaining to stop for more than a week after mediation collapses."
This also contrasts with Kakao(035720) headquarters and affiliates that have now finalized labor-management agreements. Earlier, Kakao Enterprise and Kakao Pay(377300) reached wage negotiation agreements late last month and held signing ceremonies. Kakao headquarters also reached a tentative agreement on wages on the evening of the 29th. The union plans to disclose the details soon through a membership vote.
KakaoBank, by contrast, faces large gaps from the outset on overall terms such as bonus size and annual pay raise rates. According to industry sources, management proposed paying a performance bonus equivalent to about 10% of operating profit by combining cash and treasury shares, but the union demanded more. Talks over the annual raise rate proceeded around the high-6% range but failed to narrow differences.