Kakao union stages 1-day walkout after partial strike

Kakao office in Seongnam, Gyeonggi Province, June 9 / Yonhap

Unionized workers at mobile messenger giant Kakao staged a one-day walkout Monday amid prolonged wage negotiations with management.

According to Crew Union, which represents Kakao staff, members took part in a "log-off day" campaign, a form of strike in which employees took leave and signed out of the company's internal work platforms, effectively suspending their duties for the day.

The walkout involved union members from Kakao and its affiliates, including payment service provider Kakao Pay, cloud computing firm Kakao Enterprise, IT services company dk techin and game developer XLGAMES.

The union said approximately 2,100 members participated in the walkout, nearly half of its 5,000 members. Kakao, however, estimated that about 800 employees took part in the strike. Aside from the walkout, the union did not stage separate protests or rallies and said it would not issue a separate statement.

Members of the Kakao union stage a rally in Seongnam, Gyeonggi Province, June 10. Yonhap

The walkout came after 1,500 members of the union staged a four-hour partial strike on June 10, marking the first labor strike in the mobile platform giant's 20-year history.

The two sides have been at odds over wage negotiations, with the union demanding greater transparency in performance-based compensation, stronger job security and greater accountability from management.

Members from Kakao have raised concerns over compensation for employees involved in major service upgrades, including the revamp of flagship messenger KakaoTalk. Kakao Pay members are calling for normalized compensation following the company’s return to profit. Union members at Kakao Enterprise, dk techin and XLGAMES have also raised issues, including business strategy, wage increases and job security.

"Negotiations are underway, but we have yet to reach a level where an agreement can be made," Crew Union Vice President Park Seong-eui said.

With employees of Kakao comprising a majority of the union, at the center of the dispute is Kakao's performance-based compensation system. The two sides are contesting over the amount of performance bonuses and whether restricted stock units (RSUs) worth about 5 million won should be counted as part of the bonuses.

The union is demanding performance bonuses equivalent to about 13 to 14 percent of operating profit, while arguing that the RSUs should be excluded from the bonus calculation. Management, however, claims that such demands would place an excessive financial burden on the company.

Crew Union gained the right to stage labor actions after a mediation session collapsed on May 27.

As of Monday afternoon, no major disruptions had been reported on KakaoTalk or Kakao Pay, Kakao's two most-widely used services. Kakao said maintenance work can be handled by non-union employees and emergency response personnel. The union also said the walkout would have only a minimal impact on Kakao's services.

The union said it is discussing its next steps following Monday's walkout while continuing negotiations with management.