93% Support Financial Union Strike... Strike Scheduled for the 16th Next Month After 6 Years

First General Strike Expected Since 2016
Dramatic Agreement Possible with One Month Remaining

In September 2016, members of the National Financial Industry Labor Union (Financial Labor Union) staged a general strike at Sangam World Cup Stadium in Mapo-gu, Seoul.

[Asia Economy Reporter Minwoo Lee] The National Financial Industry Labor Union (Financial Union), which includes labor unions from commercial banks and financial public enterprises, will go on strike on the 16th of next month with the support of the majority of its members.

According to the financial industry on the 20th, the Financial Union held a strike vote among its members the day before, and the strike was approved with a 93.4% approval rate. Accordingly, members of the Financial Union from commercial banks, KDB Industrial Bank, Korea Credit Guarantee Fund, and Korea Asset Management Corporation (KAMCO) will suspend work on the 16th of next month. The strike is expected to be a full strike rather than a partial one. The last time the Financial Union conducted a full strike was in September 2016.

The background of the strike is interpreted as the failure to narrow differences in wage and collective bargaining agreement negotiations between labor and management. In particular, the management side (Financial Industry Council) proposed a wage increase rate (1.4%) far below the inflation rate, which seems to have prevented an agreement. According to Statistics Korea, the consumer price index (CPI) increase rate compared to the previous month has steadily risen from 0.9% in January 2021 to 6.3% in July. The Financial Union demanded a 6.1% wage increase, a 36-hour workweek, and a ban on branch closures, but the management reportedly showed reluctance on most issues.

However, since there is still about a month left until the announced strike date (September 16), there is a possibility that labor and management negotiations may be resolved amicably. Last year, the Financial Union also approved a strike through a dispute vote, but the strike did not proceed due to labor-management agreement.

There is also an opinion that even if the strike proceeds, its effect may not be significant. This is because the development of non-face-to-face financial services means that general consumers may not suffer as much damage as in the past, so the strike effect may differ from before.