Will Financial Workers in South Korea Strike This Month?
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Synopsis
In a significant move, unionised financial workers in South Korea are gearing up for a nationwide strike this month. Their demands include a wage hike and a shift to a 4.5-day workweek. This bold decision reflects growing discontent among workers in the financial sector, as they also seek improved hiring practices and retirement policies.
Key Takeaways
- 95 percent of KFIU members voted for the strike.
- Strike scheduled for September 26.
- Demands include wage hikes and a 4.5-day workweek.
- Calls for increased hiring and extension of retirement age.
- Samsung Electronics workers also seeking bonus transparency.
Seoul, Sep 2 (NationPress) On Tuesday, unionised financial workers cast their votes in favor of a one-day nationwide strike later this month, advocating for a wage increase and a 4.5-day workweek. The Korean Financial Industry Union (KFIU) reported that approximately 95 percent of its members supported the strike scheduled for September 26, according to Yonhap news agency.
The KFIU, which is associated with the Federation of Korean Trade Unions—one of South Korea's two major umbrella unions—represents the country's primary private and state banks, along with various financial institutions. The union is also pushing for increased hiring and the extension of the retirement age.
In a related development, workers at Samsung Electronics submitted a letter to Chairman Lee Jae-yong on Tuesday, urging the company to enhance the transparency of its bonus system.
The correspondence to the effective leader of Samsung Group demanded the implementation of a more transparent bonus evaluation system and the discontinuation of the current model based on economic value added (EVA).
The union stated, "While SK hynix recently decided to allocate 10 percent of its annual operating profit to its bonus program, Samsung Electronics continues to rely on the EVA method, which is opaque."
Just a day prior, SK hynix Inc. and its labor union reached a preliminary wage agreement whereby the company will set aside 10 percent of its annual operating profit for the profit-sharing bonus program, eliminating the previous cap that restricted bonuses to 1,000 percent of employees' basic wage.
The union added, "Under the existing system, bonuses could be zero even if the company reports a substantial operating profit, and there is also a ceiling in place."
"While it may be too late to regain workers' trust, the company should at the very least demonstrate a willingness to change," the union emphasized.
At the market's close, top market cap Samsung Electronics saw a rise of 2.22 percent to 69,100 won, while the second-largest chipmaker, SK hynix, increased by 1.76 percent to 260,500 won.
Point of View
The recent vote by financial workers for a nationwide strike underscores the pressing need for dialogue between labor unions and employers. The demands for a wage increase and better working conditions reflect a broader trend of workers advocating for their rights. It is essential for companies to engage with their workforce to foster a collaborative environment that can enhance productivity and morale.
NationPress
02/09/2025
Frequently Asked Questions
What is the reason for the strike?
The strike is primarily aimed at advocating for a wage increase and the implementation of a 4.5-day workweek.
When is the strike scheduled?
The nationwide strike is scheduled for September 26.
Which unions are involved in this strike?
The Korean Financial Industry Union (KFIU) is the main union representing the financial workers participating in the strike.
What are the demands of the union?
The union is demanding a wage hike, a shorter workweek, increased hiring, and an extension of the retirement age.
How does this strike relate to Samsung Electronics?
Unionised workers of Samsung Electronics are also demanding improvements in the transparency of the company's bonus system, showcasing a broader trend of labor unrest in South Korea.
