Kakao union suspends strike following progress in talks

Kakao's office in Pangyo / Korea Times file

The labor union of tech giant Kakao, known as Crew Union, has decided to halt its ongoing strike following significant progress in collective bargaining negotiations with Kakao Mobility.

“After extensive discussions with Kakao Mobility, we have reached a considerable level of consensus and have decided to suspend the strike,” the union said Wednesday.

After the breakdown of collective negotiations with Kakao Mobility, the union staged a two-hour partial strike on June 10, marking the first such action since its founding in 2018. Additionally, it had planned to hold another four-hour strike Wednesday ahead of a full-scale walkout, slated for June 25.

“We plan to conclude the collective bargaining at the upcoming main negotiation meeting,” the union said.

The labor-management dispute was sparked by Kakao’s recent shift in business strategy to restructure its wide-ranging portfolio, which fueled the possibility that it may sell off some of its key subsidiaries, including Daum and Kakao Mobility.

Amid speculation that management was considering selling Kakao Mobility to private equity firms, workers voiced strong criticism and raised concerns about job security and the company’s long-term vision.

The conflict intensified when the collective bargaining negotiations that Kakao and its labor union began earlier this year for both Kakao Mobility and Kakao VX fell apart, prompting the union to declare a strike.

Kakao has already concluded a collective bargaining agreement. Among 11 other subsidiaries that are under the union, eight have also reached a tentative agreement. The two remaining are Kakao VX and Kakao Entertainment. While negotiations with Kakao VX have officially broken down, the union has not yet officiated the labor commission’s mediation process. Kakao Entertainment is still in negotiations.

Crew Union’s decision to suspend its strike raises a positive outlook that could help ease the growing wave of labor-management conflicts in the IT industry. Naver has also faced struggles with its union, which has been strongly protesting against the return of Choi In-hyuk, head of the tech business division.