SC First strike setting off meritocracy debate
By Kim Jae-won, Kwaak Je-yup
What do people think about the prolonged strike by the union of SC First Bank?
A survey conducted Tuesday by two Korea Times reporters that randomly asked customers, employees of other banks and related individuals how they were affected by the strike, revealed dissatisfaction with the slow and limited services. Among those in the industry, some took issue with Korea’s inflexible labor market, while others think SC’s proposed performance-based wage system, if it survives the strike, may be quickly adopted.
At the lender’s Seosomun branch in downtown Seoul, Tuesday morning, a few customers were waiting to be called to the counter.
“We suffer from a lack of staff, just as at other branches. Many of our staff are striking,” said Kim Kyu-seok, assistant manager of the corporate finance-focused branch. However, Kim refused to elaborate further saying he was busy doing his job.
A SC First customer, who identified herself an employee of Ultra Engineering and Construction, said that she has been inconvenienced while using the services at the branch.
“It took an hour to get what I had to done due to the strike. I use the automated teller machines for my personal banking, but drop by other lenders’ branches for window banking services for my CEO,” said the female employee.
An executive of a commercial lender pointed out that the SC First’s management’s proposed hasty changes have provoked an angry response from its trade union.
“The problem is that SC First is ignoring Korea’s unique seniority-based office culture, and is trying to implement a performance-based salary system too abruptly. It needs to introduce it step by step,” said an executive vice president of a Korean bank on condition of anonymity.
Having previously worked at a human resources department, he also criticized the union for flying to London to protest at the lender’s group headquarters. SC First is the Korean banking unit of the U.K.-based Standard Chartered Group.
“Korean labor unions are notorious for their stubbornness in the global market. The union’s London visit will worsen its reputation,” he said.
The vice president of one of the four major industry players said that other banks may benefit from SC First’s damaged reputation as some customers are expected to switch to other lenders.
Four SC First union leaders, including its chairman Kim Jae-yul, flew to London Saturday and to directly voice their opposition to the meritocratic salary system.
A permanent female employee of a European bank said she was satisfied with her current payment system, which mixes seniority and performance in salary considerations.
“We get paid the same basic salary based on seniority, and are paid by performance in bonuses. We have a good evaluation system, so I am satisfied,” said the employee who has worked at the lender’s Seoul branch for 10 years.
A high-ranking government officer said that he is paid according to his yearly performance evaluation.
“We are also paid by individual performance. Government officers higher than a director’s level get paid by their grade,” said an assistant commissioner of the National Tax Service asking not to be named.
An American director at a Seoul-based public relations agency said she could not understand the union’s position in protesting the performance-based culture.
“Who wants to work hard if he or she does not have any incentive?” said the director asking for anonymity.
Iker Pascual, a teacher from Bilbao, Spain pointed out loyalty and creativeness as measures to evaluate an employee’s performance.
“It would be best to somehow (adopt) both (ways of remuneration). One is for loyalty to the company and the other is for people to be creative.”
Steven Bovana, a male expat teacher from Brooklyn, N.Y. living in Yeongdeok, North Gyeongsang Province, said that labor flexibility is good for the company.
“Those who work more should be paid more. (Those who complain of losing jobs) should get over it or retire. Give someone else a chance for the job. When you fire one top guy, you could hire two or even four people.”
Eric Steinberg, a male actor from Los Angeles supported the union’s strike.
“The new system only benefits corporations and detracts from the common laborer. I hope (the workers on strike) pose a challenge to the bank, though the economic climate is difficult.”
The Korea Times contacted the American, European Union, Australian and British Chambers of Commerce in Korea, but all of four declined to comment due to the sensitivity of the issue.