KakaoBank(323410) wage and collective bargaining wrapped up after nine months. Labor and management put forward a deal that includes a 5.6% raise in annual salary, a 5 million won bonus, and 100 shares of treasury stock. It falls short of the "bonus at 10% or more of operating profit" reportedly sought by the labor union.
According to the financial sector on the 11th, KakaoBank labor and management reached a final agreement on wage and collective bargaining early this month. The talks, which began in January this year, ended after nine months.
Key points of the final deal are: ▲ a 5.6% increase in base annual salary ▲ a 5 million won bonus for concluding the wage and collective bargaining ▲ 100 shares of treasury stock granted via a stock grant. A stock grant is a type of bonus in which the company directly gives its own shares to employees at no cost. Based on the previous day's closing price (21,350 won), the total including the bonus comes to about 7 million won.
Employee sentiment on the deal is largely negative. In the union vote on the deal, the approval rate was 53.6%. On the vote in July when the union decided on a one-day strike, the approval rate was 95%. An internal KakaoBank official said, "Even half of the members who approved (the deal) felt, 'There's no point in negotiating any further,' and approved it reluctantly."
Kakao(035720) headquarters and affiliates launched a large-scale strike in June, demanding that 10% or more of operating profit be paid as bonuses. The headquarters union was said to have demanded a bonus level of 13% to 14% of operating profit. However, the wage and collective bargaining concluded with the company paying a special bonus of 3 million won.