Subsidiary with Poor Sales Performance Reports Internally on Need for Two Vice Presidents... Possible Future Reduction in Executives
"No Employee Layoffs or Wage System Changes Against Employee Will"
[Asia Economy Reporter Kwon Haeyoung] Yoon Jong-won, President of IBK Industrial Bank of Korea, has begun reviewing efficient management plans for its subsidiaries. He dismissed concerns raised by the labor union regarding possible employee restructuring or the introduction of a job-based pay system as unfounded.
On the 20th, Yoon attended the regular board meeting held at the Bankers' Hall in Jung-gu, Seoul, and told reporters, "(the remarks about subsidiary restructuring) are different from what I said," he stated. Earlier, the IBK labor union strongly opposed, during a morning rally at the head office, the claim that Yoon mentioned wage system reform and subsidiary restructuring while receiving a business report.
IBK clarified that it is only considering improving the operational efficiency of subsidiaries and denied any possibility of employee restructuring.
An IBK official explained, "President Yoon received an internal report on the necessity of two vice presidents for subsidiaries with poor business performance," adding, "We plan to review this going forward." He further stated, "There was no mention of employee restructuring, nor are there any plans for it."
Regarding the introduction of a job-based pay system, the official said, "It is a matter that requires sufficient listening to employees and the labor union before making a decision," and added, "There has been no mention of the job-based pay system, and there is absolutely no plan to push it against employees' will."
Meanwhile, since his inauguration on the 3rd, President Yoon has been unable to come to the head office for 18 days due to the labor union's protest blocking his attendance. Concerns about a management vacuum are rising as executive personnel appointments and subsidiary CEO appointments, scheduled for mid-January, are delayed.
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