"Demanding Wage Increase, 4.5-Day Workweek"... Financial Union Launches First General Strike in Three Years

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The Korean Financial Industry Union (Financial Union) launched a full-scale strike on the 26th, demanding a reduction in working hours (a pilot 4.5-day workweek), a 3.9% wage increase, and an extension of the retirement age. This is the first strike in three years since September 2022.

The Financial Union held a rally in the Sejong-daero intersection area of Gwanghwamun, Seoul, on the morning of the same day and began a general strike. Bank employees who attended the rally occupied half of the lanes on Sejong-daero.

The Financial Union and management held a representative negotiation session on the 23rd, but talks broke down. Initially, the Financial Union demanded a 7.1% wage increase, but after negotiations collapsed, they ultimately proposed a 3.9% increase. In contrast, management is sticking to a 2.4% increase.

In particular, the Financial Union is strongly advocating for the introduction of a 4.5-day workweek. Currently, bank branch operating hours are from 9 a.m. to 4 p.m. on weekdays. The union proposes extending branch hours to 4:30 p.m. from Monday to Thursday, while limiting Friday work to the morning only.

The Financial Union explained, "Over the past several years, banks have closed 765 branches and reduced their workforce by more than 7,000 in the name of efficiency, which has increased the burden on the remaining workers," adding, "Long working hours have become the norm on the ground."

Labor and management in the financial sector have yet to engage in substantive discussions on the introduction of a 4.5-day workweek. The management side is not even accepting the 4.5-day workweek as a topic for negotiation.

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The business community is also paying close attention to the Financial Union's general strike, especially regarding the union's demand for a 4.5-day workweek. In 2002, the Financial Union introduced the five-day workweek through a labor-management agreement. This led domestic companies to adopt the five-day workweek, making it the standard practice today.

Subsequently, in 2003, the National Assembly amended the Labor Standards Act to shorten statutory working hours, including the five-day (40-hour) workweek, and phased implementation began in 2004. The 4.5-day workweek is also a policy agenda of the Lee Jaemyung administration. Since a tripartite consultative body has been launched to discuss measures to reduce actual working hours, including the 4.5-day workweek, progress in discussions between labor and management in the financial sector could provide momentum for expansion to all workplaces.

Kim Hyungseon, Chairman of the Financial Union, emphasized in a statement to union members on the previous day (the 25th), "Just as we achieved the nation's first five-day workweek through our struggle in 2002, let us open the era of the 4.5-day workweek with our own strength."

The Financial Union expects more participants in this strike compared to three years ago. According to the IBK Industrial Bank of Korea union, about 5,000 people participated in the 2022 strike, but this year, the number of participants coming from various regions has increased, according to the union's analysis.

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However, it appears that citizens will not experience significant inconvenience despite the Financial Union's general strike. Although participation by commercial banks has increased compared to three years ago, the overall participation rate is not expected to be high. During the 2022 general strike, the participation rate among the five major commercial banks-KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup-remained at 0.8%. A representative from one of the five major commercial banks said, "Even if employees participate in the strike, we have ensured that bank operations are not disrupted."

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