KB Kookmin Bank Union Files Lawsuit Against Wage Peak System

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The KB Kookmin Bank labor union has filed a lawsuit, claiming that they are suffering losses under the current wage peak system.

The KB Kookmin Bank labor union announced on the 3rd that they plan to file a lawsuit at the Seoul Central District Court against the company, demanding payment of wages cut due to the wage peak system.

KB Kookmin Bank introduced the wage peak system in 2008, and labor and management agreed to limit the duties of employees under the wage peak system to back-office tasks such as 'management or management support' to reduce their workload.

However, contrary to the agreement, the union claims that a considerable number of employees are still performing frontline duties despite the application of the wage peak system.

The union stated, "Even when performing the same duties before and after entering the wage peak system in the field, wages are cut by 40% upon reaching the age of 56, with an additional 5% cut each year, resulting in a 50% cut from the age of 58." They added, "Since the Supreme Court ruled last May that the wage peak system is invalid and illegal if it does not meet four requirements, including 'whether measures for wage reduction were introduced and their appropriateness,' we hope the court will once again make a reasonable judgment."

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