SEOUL, December 27 (AJP) - The labor union of the Industrial Bank of Korea (IBK) staged its first-ever general strike on Friday, citing wage inequality and unpaid allowances. With more than 60 percent of the bank’s workforce expected to join the walkout, disruptions are anticipated at branches nationwide.
The strike follows months of failed negotiations between the union and IBK management over wages and collective bargaining agreements. Earlier this month, 88 percent of union members participated in a vote, with 95 percent approving the action, according to union officials.
Approximately 8,000 employees, or about 61 percent of the state-owned bank's total workforce, are expected to participate, excluding senior managers and team leaders.
At the heart of the dispute is what the union describes as systemic wage discrimination. IBK employees earn 30 percent less on average than their counterparts at private-sector banks, the union claims. The average salary at the IBK last year was 85 million won, or about $65,200, compared to 116 million won, or $89,000, at South Korea’s four largest commercial banks, according to the union.
The union also alleges that government-imposed caps on personnel costs have prevented the bank from paying overtime allowances, estimated at 6 million won, or $4,600, per employee annually.
Adding to the workers’ grievances is what the union called an inequitable distribution of profits. Over the past three years, the Ministry of Economy and Finance has collected more than 1.1 trillion won, or about $840 million, in dividends from the IBK, while employees received no performance bonuses, the union said.
“All union members will gather in front of IBK headquarters for a march to the government complex,” Kim Hyung-sun, the union’s head, said. “If the government and the bank fail to meet our demands, we are prepared to escalate with additional strikes, which could paralyze banking operations.”
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