The Kakao labor union announced a four-hour partial strike and a rally in Pangyo on June 10, warning it will escalate action depending on how negotiations proceed. The union is calling on management to halt asset sales, spinoffs and restructuring that it says stem from persistent management failures.
The Kakao chapter of the National Chemical Fiber Food Industry Labor Union said Sunday it would begin with a four-hour partial strike rather than an immediate full walkout, and would intensify strike action based on how future bargaining unfolds.
"The core demands of the Kakao chapter are clear," the union said. "We want management to stop the sell-offs, spinoffs and restructuring driven by repeated management failures, and to secure job stability." The union also called for an overhaul of executive compensation, saying management had monopolized outsized pay packages even as its poor decisions fueled job insecurity among workers.
On concerns about potential disruptions to key services including KakaoTalk, the union said the action would start as a four-hour partial strike, not a full walkout.
Kakao's labor and management failed to reach a final agreement at a wage negotiation mediation session held before the Gyeonggi Regional Labor Relations Commission on May 27. Following the breakdown, the union secured the legal right to take industrial action. Several Kakao affiliates have also obtained that right alongside the parent company.
The main sticking points are performance pay and job security. Management proposed a package equivalent to roughly 10 percent of last year's standalone operating profit, including restricted stock units worth 5 million won ($3,330), while the union sought a bonus of 13 to 14 percent of last year's standalone operating profit plus a separate RSU grant of 5 million won ($3,330), according to sources familiar with the talks. Growing anxiety over job security — fueled by affiliate sell-offs, spinoffs and restructuring — has also emerged as a central issue at the bargaining table.
Kakao has said the union's demands exceed what the company can reasonably absorb. In a statement released May 29, the company said it "sincerely apologizes for the concern caused by the recent situation surrounding the wage negotiations."
rim@heraldcorp.com
