Striking workers at SC First Bank are likely to return to workplaces as early as next week, ending their all-out work stoppage that started in June in opposition to the bank’s move to adopt a merit pay scheme, the lender’s labor union said Monday.
Unionized workers at the Korean unit of Standard Chartered Plc have decided to partially return to workplaces, said Chang Chang-hwan, a spokesman for the labor union.
“Unionized members plan to resume work, but will continue to stage a partial strike until their demands are met,” he said.
Irked by a management plan to adopt a performance-based pay system, about 2,900 unionized workers at the Korean unit of Standard Chartered Plc have been on strike since late June at a resort in Sokcho, 213 kilometers east of Seoul. The walkout marked the longest strike in the history of the local banking sector.
Out of 6,500 bank employees, half are unionized workers.
SC First Bank is the first lender operating in South Korea to seek an overhaul of the seniority-based salary scheme, eliciting strong opposition from its labor union, which says the move is merely to cut labor costs and does not jibe with Korean culture.
But the management, led by chief executive Richard Hill, was also adamant in introducing the pay system, saying that the bank cannot continue to pay out high salaries without growth.
The strike has strained both the management and the labor union as the prolonged walkout is increasing inconveniences for bank customers.
(Yonhap News)
