Seoul Metro Signs Labor Agreement Without Disputes... Returns 2.3 Billion KRW Budget for Social Contribution

This Year's Wage Increase Complies with Government Guidelines... First Ever Voluntary Agreement Without Disputes Since Establishment

[Asia Economy Reporter Jo In-kyung] Seoul Metro Corporation, which operates subway lines 1 to 8 in Seoul, and the corporation's labor union reached a final agreement on wage negotiations on the 13th.

Seoul Metro Corporation announced on the 14th that it reached a final agreement around 10 p.m. that day after about 12 hours of final discussions, agreeing with the union on ▲ a 2020 wage increase in compliance with government guidelines (2.8%) ▲ 11 wage-related items including improvements to family allowance payment standards following recommendations from the National Human Rights Commission ▲ replenishment of long-term vacancies (such as parental leave) ▲ establishment of a quarantine system related to COVID-19, among 25 supplementary agreements.

Previously, since the union’s notification of negotiation agenda in August, the corporation and the union have narrowed differences through continuous meetings including three main negotiations, six working-level negotiations, 13 sector-specific working subcommittee meetings, and four intensive working sessions.

In particular, in this agreement, the labor and management sides decided to return approximately 2.3 billion KRW in budget for events such as the 'Employee Harmony Day' and jointly establish a voluntary fund to be used for social contribution projects such as helping local neighbors struggling due to COVID-19. The corporation explained that this reflects both parties’ will to faithfully fulfill their social responsibility as a public institution despite difficult financial conditions.

This labor-management agreement is also the first result since the founding of Seoul Metro Corporation in 2017 to be autonomously derived without separate conflicts such as union strikes or labor commission mediation procedures. It is interpreted that both sides reached a consensus on the need to move toward a relationship of coexistence and harmony rather than confrontation amid unprecedented difficulties caused by a decrease in passengers due to COVID-19.

Kim Sang-beom, CEO of Seoul Metro Corporation, said, "Peaceful negotiation settlement was possible because both labor and management agreed on the need to unite to overcome the corporation’s current crisis," adding, "We will continue to build a labor-management relationship based on trust and coexistence and do our best to ensure that citizens can use the subway safely and conveniently."

Kim Sang-beom, President of Seoul Metro (left in the photo), and Kim Dae-hoon, Chairman of the Seoul Metro Labor Union, reached an agreement on the wage contract on the 13th and are taking a commemorative photo.

This content was produced with the assistance of AI translation services.