KB Kookmin Bank Wage Deal Rejected... 4.9-Day Workweek Put on Hold (Comprehensive)

Ongoing Discussions on Reduced Working Hours in the Banking Sector

The tentative wage collective bargaining agreement at KB Kookmin Bank has been rejected in a union vote.

As a result, the introduction of a one-hour reduction in working hours, which was expected at the end of January, is likely to be postponed for the time being.

According to the financial sector on January 20, the KB Kookmin Bank labor union held a vote among its members, with 5,567 out of 9,006 participants (61.8%) voting against the tentative agreement, resulting in its rejection. This is the first time that a labor-management agreement has been rejected.

Previously, labor and management had drawn up a tentative agreement centered on a 3.1% wage increase for general employees, a performance bonus equivalent to 300% of the monthly base salary, and a special incentive payment of 6 million won. It was reported that there were internal complaints within the union regarding the wage increase rate and compensation structure.

The introduction of a 4.9-day workweek, which had attracted attention both inside and outside the financial sector, will also be determined based on the outcome of the renegotiations.

Recently, as major banks have been introducing shorter work hours, discussions on a 4.5-day workweek are gaining momentum in the financial sector.

IBK Industrial Bank of Korea has been officially implementing a one-hour reduction in working hours on Wednesdays and Fridays since January 7. Employees leave work one hour earlier than usual and complete training programs remotely. However, the system is currently operated at the discretion of each branch.

NH Nonghyup Bank will also implement a one-hour reduction in working hours per week within the first half of the year. Shinhan Bank and Hana Bank are also discussing related matters. Woori Bank is expected to begin full-scale discussions after the union leader takes office on January 23.

This trend among banks follows the labor-management consultations between the National Financial Industry Labor Union and the Korea Federation of Banks. In October of last year, labor and management in the financial sector reached a tentative agreement to implement a one-hour reduction in working hours on Fridays and to form a task force for the introduction of a 4.5-day workweek.