Nine Kakao Group Affiliates, Excluding Kakao and XL Games,
to Stage First Strike Since 'Crew Union' Was Established in 2018
The Kakao labor union 'Crew Union' has announced a total strike in opposition to the spin-off and sale of group companies Daum and Kakao VX (a subsidiary of Kakao Games and a golf specialty company).
On the 26th, Seo Seung-wook, head of the Kakao branch of the National Chemical, Textile, and Food Industry Labor Union (Chemical Textile Food Union), held a press conference at Space Dot One in Yeongpyeong-dong, Jeju, where the regular shareholders' meeting was held, stating, "For the first time since the establishment of the Kakao union, we declare a complete breakdown of wage negotiations and collective bargaining (wage and collective agreement)."
As a result, wage and collective bargaining negotiations have broken down for Kakao Mobility, Kakao Entertainment, Kakao Pay, and others currently undergoing collective bargaining. The subsidiaries where wage negotiations have failed include Kakao Bank, Kakao Enterprise, K&Works, and Kakao VX. DK Techin and Kakao Games have seen collective bargaining break down. Kakao and XL Games have completed their wage and collective agreements.
The Kakao Branch of the National Chemical Fiber Food Industry Labor Union (Crew Union) held a rally on the 19th in front of Kakao Pangyo Ajit in Seongnam, Gyeonggi Province, opposing the spin-off of the content in-house independent company (CIC) that operates the portal service 'Daum.' Photo by Yonhap News
Earlier, the Kakao union demanded countermeasures from management by 3 p.m. the previous day regarding the deadlock in collective bargaining. After declaring the breakdown of collective bargaining, they plan to apply for mediation and conduct a strike vote, aiming to carry out a total strike next month. If the total strike is implemented, nine subsidiaries excluding Kakao and XL Games are expected to participate. This will be the first strike at Kakao since the establishment of the Crew Union in 2018.
The Kakao union has taken the total strike card in opposition to employment instability caused by the spin-off and sale of group companies. An Se-jin, a member of the Kakao branch, expressed concern, saying, "The spin-off of the portal 'Daum' content in-house independent company (CIC) will inevitably lead to employment instability." He added, "When merging, it was called a love marriage, but now is it a consensual divorce? Who agreed to this?" and demanded, "Instead of a spin-off, please establish a clear vision and investment plan for Daum services within Kakao."
On the same day, Lee Jeong-dae, secretary of the Kakao branch, held a press conference after the Kakao Games regular shareholders' meeting at the Kakao Artificial Intelligence (AI) Campus in Yongin, Gyeonggi Province, stating, "Kakao VX employees have had to suffer from employment instability such as voluntary retirement and restructuring," and argued, "Irresponsible restructuring and sales must stop, and a structure guaranteeing employment stability must be created." He also pointed out, "At the time of acquisition, the company was already in a state of capital erosion, but the management only pursued external expansion, and now they are trying to dispose of a company that has lost its substance."
A Kakao official said, "Currently, the content CIC spin-off is in the initial preparation stage, and the choice to move to the spin-off corporation lies with each employee, and the company will respect the individual wishes of employees," adding, "We will actively discuss the union's requests and continue negotiations."
The Kakao Branch of the National Chemical Fiber Food Industry Labor Union (Crew Union) held a rally on the 26th in front of the Kakao Artificial Intelligence (AI) Campus in Yongin, Gyeonggi, where the Kakao Games regular shareholders' meeting was taking place, opposing the sale of Kakao VX. Photo by Jeon Young-joo
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