Value context and insight. lkm@koreatimes.co.kr
'KB should let more workers go'
Workers of KB Kookmin Bank participate in a strike at a stadium in Jamsil, Seoul, Jan. 8. Experts say the Bank's management need to further reduce workforce given the recent one-day strike attended by at least a third of union workers caused no major disruption at the bank's over 1.000 branches nationwide. Yonhap
By Lee Kyung-min
By Lee Kyung-min
The recent one-day strike organized by over 10,000 workers at KB Kookmin Bank laid bare a chronic problem dragging down corporate competitiveness ― a redundant workforce, according to experts.
Despite the fact the strike was participated in by at least a third of the bank's 17,000 workers, no major disruption was reported at the bank's 1,058 branches, which critics say illustrated the need to reduce the number of highly-paid, white-collar jobs that have been relatively safe from sudden layoffs.
Union workers at the bank with over 31 million customers went on strike Jan. 8, citing “unacceptable terms” offered by the management on the peak wage system.
A second two-day strike from Jan. 31 through Feb.1 will be staged, they added, if the management refuses to accept their demands.
“Criticism is expected to continue against the highly-paid union workers over such a selfish move,” according to Yun Chang-hyun, a business professor at the University of Seoul.
“The public considers the workers as only protecting their vested interest. It is understandable because they get high wages,” he said.
“The day's work had been carried out by irregular, contract workers, to whom such a collective action remains a luxury. If they go on strike later this month, it will only fuel criticism that the financially well-to-do group of workers' greed is reaching a new height, not to mention the collective action further losing justification,” he added.
The strike will only end up hurting the workers, because it give cause for the management to shut down branches faster amid the growing need to move toward a digital transformation, a key initiative in the financial industry, according to Lee Chae-woong, an emeritus professor of economics at Sungkyunkwan University.
“Banks have reduced the number of branches over the past few years as customers have access to the internet and mobile apps which help with most basic banking functions. The strike seeking short-term gain may result in a bigger loss over the long term,” he added.
According to the Financial Supervisory Service, branches operated by the country's five major banks ― KB Kookmin, Shinhan, KEB Hana, Woori and NongHyup ― decreased to 4,708 in 2018, an 8.2 percent drop from 5,126 in September 2015.
The banks have not opened a single branch over the past three years, with face-to-face service accounting for only 8.4 percent of the bank's cash deposit and withdrawal services. Over half, or 52.6 percent used the internet, while 30.6 percent used Automated Teller Machines (ATMs).