Naver's labor union is advocating for the consolidation of collective bargaining, currently conducted by individual subsidiaries, into a unified approach for the entire corporate group. This move has raised concerns among competitors, including Kakao and the gaming industry.
On August 12, Oh Se-yoon, vice chair of the IT committee of the Korean Chemical and Textile Workers' Union and head of the Naver branch, spoke at a forum held at the National Assembly, stating, "The Naver branch is negotiating collective agreements with 15 companies, including Naver itself. Each year, over 100 negotiators from both labor and management spend more than 1,000 hours on negotiations, totaling 150 sessions annually."
He continued, "Conducting separate negotiations on similar issues within the same corporate group incurs significant time and costs. Even with identical working conditions, subtle differences arise between corporations, leading to increased feelings of deprivation among subsidiary workers."
Oh argued that the parent company effectively controls its subsidiaries, linking management and operations. He clarified that the goal of unified negotiations is not to standardize wages and benefits across all subsidiaries but to negotiate common labor conditions at the corporate group level while addressing individual company matters separately.
Panelist Park Myung-jun, a senior researcher at the Korea Labor Institute, explained, "Reducing repetitive negotiations and adjustment processes at the corporate level can lower overall negotiation costs and establish common principles applicable to subsidiaries, allowing for more stable management of inter-company conflicts."
Major IT companies, including Naver, express significant concerns about unified negotiations. The challenge lies in applying different wage compensations for profitable and unprofitable subsidiaries, which could lead to increased labor costs. Conflicts at one subsidiary could potentially trigger joint strikes or work stoppages across all subsidiaries.
The key issue is whether the parent company has substantial control over the working conditions of its subsidiaries. Acknowledging this control could undermine the unique management rights of each subsidiary's CEO, raising concerns about management interference.
Particularly, Kakao, which has multiple subsidiaries, and the gaming industry, with various development studios and affiliates, share similar corporate structures. If discussions on unified negotiations expand, labor relations could deteriorate rapidly.
Meanwhile, the push for unified negotiations originated from Naver's subsidiary, Naver Z. While Naver agreed to a wage increase of 5.3%, Naver Z froze salaries due to market downturns. The union subsequently demanded a raise at the corporate level, leading to a breakdown in negotiations. The Gyeonggi Regional Labor Relations Commission attempted mediation, but it ended without significant results.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.