By Kim Jae-won
A division is evident among employees of the Korea Exchange Bank (KEB), which was recently acquired by Hana Financial Group, with a group of unionists criticizing their leadership for reaching a quick truce with the new management.
KEB’s union, led by Kim Kwi-chul, recently signed an agreement that involves conditions on wages and job security and also a promise that Hana will keep the KEB brand for at least the next five years before it is absorbed by Hana Bank.
However, this appears to have angered a fraction of unionists, who have called for a ``one-company, two-bank’’ system to be permanent. The average KEB employee has been paid higher than Hana counterparts and this has some concerned about their eventual level of compensation and working conditions.
``A lot of unionists were surprised by the compromise and expressed that it would be better if they stage a sit-in strike and take the fight further,’’ said Kim Bo-hyeon, spokesman of KEB’s union.
The complaints among unionists have become so loud that Kim Kwi-chul has been visiting bank branches in provincial areas to calm fears. He will have a difficult time massaging the egos of unionists, said one union member.
``I feel empty. We have fought for over a year but the conclusion is the same,” he said.
KEB unionists have been vocal about their displeasure of Hana coming in and taking over, spending the past five months organizing street marches and demonstrations after Hana reached an agreement to buy the bank from the U.S.-based Lone Star Funds in November 2010.
Industry watchers say KEB employees are afraid of the acquisition because it is the first time for them to be taken over by another lender. KEB has kept its name for more than four decades since its establishment in 1967.
Experts advise KEB to focus on producing a synergy effect rather than looking back at the past.
“It is time to find the best combination in a realistic manner. Hana is the major shareholder, so it has right to decide how to manage KEB,” said Jeon Hyo-chan, an economist from Samsung Economic Research Institute.
Observers say the complaining KEB employees will test the leadership of the lender’s new CEO Yun Yong-ro. Yun said his first task is to win employees’ hearts during his inauguration speech.
As the first step, the bureaucrat-turned-banker replaced nine vice president-level executives earlier this week heralding his quick and decisive management style. Employees welcomed the change as many senior bankers held executive seats for a long time during the Lone Star era.