The head of the Naver labor union chapter is reportedly designated as the final chief negotiator for labor talks at rival Kakao. While working-level talks are handled by the Kakao chapter, the final negotiations are led by the head of Naver's chapter, a different company.

A view of Kakao's Pangyo headquarters in Seongnam, Gyeonggi Province. /Courtesy of News1

According to the IT (information technology) industry on the 2nd, the IT and gaming industry chapters under the Korean Confederation of Trade Unions (KCTU) Korean Chemical, Textile & Food Workers' Union (KCTFU) operate a system in which a union from another company serves as the chief negotiator.

Accordingly, in Kakao's labor-management talks, the Kakao chapter conducts discussions with management, but the final chief negotiator is the head of the Naver chapter. Even if the company and its union wrap up negotiations, final approval before an agreement is given by a rival.

Conversely, for Naver's labor talks, the Kakao chapter head is designated as the chief negotiator.

This system is said to have been in place not only at Naver and Kakao but also at other IT and gaming industry chapters under the Korean Chemical, Textile & Food Workers' Union (KCTFU). It is reported to have been introduced by the higher-level Korean Confederation of Trade Unions (KCTU) to strengthen solidarity among unions in the industry and to activate industrywide bargaining.

There are concerns that management may see this as a burden. Because a union executive from corporations in a competitive relationship is designated as another corporation's chief negotiator, wages, performance bonuses, and benefits could be shared across business sites.

Meanwhile, Kakao's union has recently clashed with management over the performance bonus system and other issues. On June 10, it held its first partial strike since the company's founding, followed by a full-day strike on the 29th of the same month.

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