Banks' Friday hour cut plan sparks customer concerns

Customers and bank tellers are seen at a bank branch in Seoul, Feb. 26, 2024. Newsis

Concerns are growing that consumers may face increased inconvenience after the workers' union and management in the financial sector reached an agreement in sector-wide negotiations to reduce Friday working hours by one hour.

According to industry officials Sunday, the Korean Financial Industry Union (KFIU), which represents workers at major commercial and policy banks, and the Korea Financial Industry Employers Association reached a tentative agreement Thursday that includes a one-hour reduction in Friday working hours and a 3.1-percent wage increase.

The deal was reached about a week after the KFIU initiated a full-scale strike, Sept. 26, calling for the introduction of a 4.5-day workweek. Regarding the implementation of this, the union and management agreed to establish a task force to continue discussions going forward.

The employers’ association stressed that the one-hour early leave on Fridays is intended to be “applied flexibly according to each institution’s circumstances while maintaining current business hours,” emphasizing that the agreement does not automatically mean shorter operating hours for banks and other financial institutions.

Nevertheless, many in the field believe that reducing working hours will inevitably require cutting service hours.

“To allow employees to leave earlier, the closing time for counters will have to be shortened,” an official at one of the major banks said.

Currently, most banks in Korea operate from 9 a.m. to 4 p.m., and a considerable number of complaints have already been raised regarding the current closing time. If the latest agreement leads to earlier closing time on Fridays, from 4 p.m. to 3 p.m., public criticism is expected to intensify.

Many critical comments have already been posted on the anonymous workplace community Blind.

One user wrote, “Financial labor and management have overlooked the perspective of customers dealing with difficulties in the field,” while another argued, “Shortening working hours without measures to protect consumers is inappropriate.”

In particular, concern has been raised over the potential hardship for vulnerable groups, including the elderly and small business owners, who still need in-person banking services.