Kakao Union Begins Member Vote on Provisional Wage Negotiation Agreement

Wage Negotiations to Be Finalized If Majority Approves
Labor-Management Conflict Nearing Resolution

As Kakao labor and management, who have been in conflict over performance-based bonuses and other compensation systems, have reached a provisional agreement, the union is now conducting a vote among its members to decide on the matter.

According to the IT industry on August 5, the Kakao branch of the Korean Federation of Chemical, Textile, Food and Service Workers' Unions (Kakao Union) held an explanatory session on the provisional wage negotiation agreement for union members earlier this week, sharing the details. Subsequently, the union is holding a vote on the agreement today.

On the 21st, Kakao union members held a rally holding pickets in front of the Kakao Bank headquarters in Pangyo, Seongnam, Gyeonggi Province. Photo by Yonhap News

The results of the vote are expected to be announced within this week. If more than half of the union members approve, the wage negotiations will be concluded. In that case, the conflict between Kakao labor and management will move toward resolution.

Kakao labor and management have agreed not to disclose specific details regarding the wage increase rate and performance-based bonuses until the agreement is finalized.

The main point of contention between Kakao labor and management has been around the structure of performance-based bonuses. Specifically, the major issues were the scale of the bonuses and whether to include restricted stock units (RSUs) worth 5 million won as part of the performance-based bonuses. While the two sides had been negotiating these points, the lack of an agreement led the union to acquire the right to strike at the end of May.

Subsequently, the Kakao headquarters union launched the company's first-ever strike by carrying out a four-hour partial walkout on June 10, followed by a full-scale strike called "Logout Day" through annual leave protest methods on June 29. On July 21, union members also staged a picket protest at the headquarters during lunchtime.

However, labor-management disputes that had spread to Kakao affiliates are still ongoing in some areas. While the unions of Kakao Pay and Kakao Enterprise, which participated in collective actions along with Kakao headquarters union, have reached agreements with management and ended their strikes, DKTechin and XL Games have yet to reach an agreement.

Kakao Bank, Kakao's internet-only bank, has also faced labor-management disputes over the performance-based compensation structure, leading the union to take collective action. After securing the right to strike on July 20, more than 700 Kakao Bank union members participated in a full-day strike on July 31. This was the first ever strike by a union in the internet-only banking industry.

This content was produced with the assistance of AI translation services.