Financial Labor Union Announces General Strike on the 16th... "Demanding Wage Increase Matching 5.2% Inflation Rate"

Store Closures, Workforce Reductions, and Demands to Halt Relocation of National Policy Banks to Provinces
Rally at Gwanghwamun Sejongno... March Planned to Yongsan Presidential Office

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The National Financial Industry Labor Union (Financial Union) has decided to proceed with the general strike as scheduled on the 16th. They plan to march to the Yongsan Presidential Office, demanding the suspension of branch closures and workforce reductions from management.

On the 14th, the Financial Union held a press conference titled "Financial Union 9.16 General Strike to Defend Financial Publicness" in front of the Bankers Association Hall in Myeong-dong, Seoul. The press conference was attended by Park Hong-bae, chairman of the Financial Union, along with 28 branch chairpersons.

The Financial Union announced that it revised its wage increase proposal from the original 6.1% to 5.2%. The management proposed 1.4%, showing disagreement, but eventually lowered it to the inflation rate level. Chairman Park stated, "5.2% is lower than the average wage increase rate of 5.3% agreed upon by all industries in the first half of the year, and there is no room to back down further." Along with the wage increase proposal, the Financial Union also suggested implementing a 4.5-day workweek limited to certain job categories.

They demanded the suspension of branch closures, workforce reductions, and the policy of relocating national policy banks to provincial areas. Kim Jung-won, chairman of the Daegu Bank branch of the Financial Union, said, "The policy of simultaneously closing branches has led to longer customer waiting times, and employees are constantly burdened with complaints while having to meet performance targets." He added, "Management proposed a low wage increase without improving these harsh conditions." According to the Financial Union, banks eliminated 750 branches and reduced their workforce by over 4,000 during the COVID-19 pandemic. Furthermore, the Financial Union warned in a statement, "We demand a complete revision of policies including the suspension of asset transfers of national policy banks and the abolition of relocation policies. If our demands are not accepted, we will face massive resistance from labor, citizens, and society as a whole."

The Financial Union urged management and the government to engage in sincere dialogue. Chairman Park said, "The Financial Union requested the resumption of representative negotiations on the 7th and 14th for a peaceful resolution, but the management did not accept these requests. Considering public inconvenience, we accepted the management’s proposal for one-on-one representative negotiations and have been negotiating since this afternoon." He added, "We also conveyed our demands to the government side but have not received any significant response."

If the Financial Union proceeds with the planned industrial action, it will be the first general strike in six years since 2016. The reception for the 'Safe Conversion Loan' will also be implemented on the 15th, raising concerns about operational disruptions at some branches. However, it is reported that the unions of Woori Bank and NongHyup Bank have decided not to participate in the general strike. It is also reported that the chairpersons of the Woori Bank and NongHyup Bank branches of the Financial Union did not attend the meeting that day.

The Financial Union plans to hold a rally at 10 a.m. on the 16th at Sejongno Intersection in Gwanghwamun, Seoul. After the rally, union members will march to the Yongsan Presidential Office.

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