By Oh Young-jin
An economic storm stirring from the downgrade of the United States’ credit rating and the European debt crisis has stolen the spotlight from one of the biggest financial crises in Korea ― a strike by a majority of the employees of SC First Bank, the longest collective action by a bank union.
The latest news on the strike is a protracted standstill in negotiations, with some of 3,000 employees leaving the picket lines and opting for a “resort strike.”
“We have done what we can,” SC public relations officer Park Jong-hoon told The Korea Times, Monday. “We are waiting for the union to return to the negotiating table.”
The bank has offered to set up a task force to handle talks on the introduction of a performance-based pay system, the spark that triggered the ongoing strike, asking the union to resolve the rest of the problems through dialogue.
During his meeting with Financial Supervisory Service (FSS) Governor Kwon Hyouk-se, SC First CEO Richard Hill said that the dispute would be resolved soon. He said that about 120 union members left the resort in Sokcho, Gangwon Province, where the unionists have set up camp, and were returning to work.
The “no-work, no-pay” rule means the unionists have not been paid since late June, when the strike began.
Some sources say that those who didn’t join the strike were sending monetary tokens of appreciation ― given by the company in gift certificates, for instance ― to the union.
The union reportedly said that the number of defectors was quite small, accounting for less than 1 percent of the total, their departure being related to “pressure tactics” by the company.
The union takes issue with Hill’s authority, claiming that he is being remote-controlled from the bank’s London headquarters. To illustrate this point, a union delegation went on a protest trip there but didn’t make any progress.
Hill openly rebutted the union’s claim, declaring that “the buck stops with me.”
Bank officials said that he runs a crisis-management team staffed by his close aides to make on-the-spot decisions with enough resources at his disposal.
Union leader Kim Jae-yul was adamant, reportedly saying that the strike could spread to online banking, with any disruption likely to lead to what he called “irreparable” damage.
It is widely believed that the strike would end only after the two sides exhaust themselves further in the standoff. Two things are clear.
One is that the brewing financial storm will act as an added impetus to the early resolution of the confrontation, since public opinion is set to swing against both management and the union. If a crisis can double as an opportunity, either party could make a breakthrough move ― the union offering to return to work and the management proposing a bottom-up review.
The second is that without a dramatic resolution, SC First has nothing to gain.
The likelihood is that great doubt would be cast on the ability of its management, even if triumphant, to continue to lead with blood on its hands.
The union would not only reinforce its image of inflexibility, but also damage its credibility as a reliable partner to improve working conditions.
Either of the two sides has enough motivation to make the first move. But whoever it is, the move should be taken not as a sign of weakness but of maturity.
foolsdie5@koreatimes.co.kr