SC First Bank chief vows to resolve labor strike quickly

SEOUL, July 25 (Yonhap) -- The head of SC First Bank, the South Korean unit of Standard Chartered Plc, pledged Monday to resolve a prolonged labor strike in order to allow the bank to continue its investment in Korea.
The labor strike at SC First Bank entered its 29th day on Monday, the longest walkout in the history of the local banking sector. Unionist workers launched an indefinite strike on June 27 in opposition to the bank's move to adopt a performance-based pay system.
"I'd like to express my absolute commitment and determination to resolve the strike quickly through open and full dialogue and negotiations with the union," Richard Hill, chief executive officer at SC First Bank, told a press conference.
"I'll do everything possible to seek an early resolution of the strike."
Hill said the bank already has plans for much deeper investment in Korea and is looking forward to the completion of the labor strike soon so as to continue to implement its investment plans.
But he also added that even with a prolonged labor stoppage, there would be "no change" in the bank's plans for the Korea market, as well as no intention to close additional branches.
SC First Bank is the first lender in South Korea seeking to overhaul a seniority-based pay system, inviting fierce opposition from its labor union, which claims the new pay scheme is aimed merely at reducing labor costs. Out of 6,500 bank employees, half are unionized workers and about 2,900 union members have been staging a rally.
The prolonged labor strike has forced the lender to temporarily shutter about 10 percent of its nearly 400 branches, causing bank customers to face inconveniences in using financial services.
On Wednesday, the management suggested a revised proposal to the labor union like creating a task force to discuss the issue of adopting a merit-based pay system, but tensions between the two parties have not shown signs of easing as four labor representatives flew to London on Saturday to visit the headquarters of Standard Chartered to stress the legitimacy of the walkout.
Hill demanded that the labor union return to the negotiation table possibly within this week.
The ongoing labor strike is feared to lead customers to flee from the bank, sparking concerns about deposit withdrawal, but Hill said the labor strike has incurred "no material damage" in terms of balance sheets.
sooyeon@yna.co.kr