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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Kakao and its labor union have entered a formal mediation process following the breakdown of this year’s wage negotiations, with both sides presenting conflicting views on the причины behind the impasse.
While some industry observers have pointed to demands for higher performance-based bonuses as the key issue, the union has pushed back, stating that “the core problem is not bonuses, but the company’s insincere negotiation approach and flawed profit-sharing structure.”
According to the IT industry on May 11, the Kakao branch of the Korean Chemical, Textile, Food and Allied Workers’ Union (Crew Union) recently applied for mediation with the Gyeonggi Regional Labor Relations Commission after wage talks with management collapsed. The union said negotiations failed across five Kakao affiliates, including Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games.
Earlier reports suggested the union had demanded that 13–15% of operating profit be allocated for performance bonuses, with some analysts noting that SK hynix’s decision to allocate 10% of operating profit for bonuses may have influenced Kakao’s negotiations.
However, the union clarified in a follow-up statement that “the 10% figure was merely one of several proposals reviewed during intensive bargaining and was not the union’s formal demand or the core reason for the breakdown.” It also criticized the company for highlighting the figure in a way that portrays employees as excessively demanding.
The union cited multiple factors behind the collapse of negotiations, including excessive working hours, inadequate responses to workplace harassment allegations, controversy over requiring employees to consent to forensic analysis of personal devices, repeated changes in negotiation representatives, and delays in presenting substantive wage and compensation proposals.
It further argued that while executives benefited from compensation and stock option exercises, employees who contributed to performance received only limited rewards.
In response, Kakao stated, “We have engaged in sincere discussions with the union regarding this year’s wage negotiations, but were unable to reach a final agreement on detailed compensation structures, leading to the mediation process.” The company added that it will participate in the mediation process in good faith and continue efforts to reach an amicable agreement.
If mediation fails, the union may proceed with strike actions. The Kakao union plans to hold a rally at Pangyo Station Plaza on May 20 and move toward collective action.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
