Neople Union Dissolved Over Performance Bonus Dispute... Four-Month Labor Action Halted

Dissolution Decided by Vote at Delegates' Meeting
Differences in Labor Dispute Approach Between Nexon Branches
Neople Branch: "We Will Prepare a Response Plan"

The labor union of Neople, a subsidiary of Nexon, has been dissolved following a conflict with the parent Nexon union over the distribution of performance bonuses. All collective actions, including a strike that had lasted for over four months, have also come to a halt.

The Neople Branch of the Korean Confederation of Trade Unions Chemical, Textile, and Food Workers' Union held a press conference urging negotiations in front of the Nexon Korea headquarters in Seongnam, Gyeonggi Province, last July. Photo by Yonhap News Agency

According to the gaming industry on October 24, the Nexon branch of the Korean Confederation of Trade Unions' Chemical, Textile, and Food Workers' Union passed the agenda to dissolve the Neople branch at a delegates' meeting held the previous day. The Neople union announced to its members, "Excluding the 13 Neople delegates, all 24 Nexon branch delegates voted in favor, and the motion to dissolve the Neople branch was approved. As a result, the rights of the Neople branch members and executive committee will be transferred to the Nexon branch."

The union added, "Since there was no prior discussion before the matter was brought to the delegates' meeting, both the executive committee and the Neople delegates consider this a sudden development. The dissolution of the branch is not specified in the branch’s regulations, so we are currently discussing with the Chemical, Textile, and Food Workers' Union and higher-level organizations whether such a decision can be made at a delegates' meeting. We will prepare a response plan."

Industry insiders believe that the conflict arose from differences in the direction of labor disputes between the Nexon branch and the Neople branch. Although both are part of the Chemical, Textile, and Food Workers' Union, the Neople branch took a hardline stance, including going on strike during wage negotiations, while the Nexon branch reportedly opposed such actions.

The Neople union launched a strike in June, becoming the first in the industry to do so. Despite achieving record-high sales last year thanks to the success of "Dungeon & Fighter Mobile" in China, the union protested that the company had reduced the new development performance bonus (GI) compared to previous years. Although negotiations with management continued, the labor dispute has been temporarily suspended following the recent decision to dissolve the branch.