ID :
197967
Fri, 07/29/2011 - 06:13
Auther :
Shortlink :
https://oananews.org//node/197967
The shortlink copeid
Bank union files OECD complaint over Standard Chartered's pay plan
SEOUL, July 29 (Yonhap) -- The umbrella group of unionized South Korean bank workers said Friday it has filed a complaint with the Organization for Economic Cooperation and Development (OECD) over Standard Chartered Plc's move to adopt a merit pay system here.
About 2,900 unionized workers at SC First Bank, the Korean unit of Standard Chartered, have been on an indefinite strike since June 27, in protest against the bank's move to adopt a performance-based pay system. The strike marked the longest walkout in the history of the local banking sector.
The Korean Financial Industry Union (KFIU) said it and UNI Global Union, a global union of service industry workers, lodged the complaint Thursday with the OECD against the British banking giant, claiming that the bank's move is in violation of the OECD's guidelines regarding multinational companies.
They said in a statement that a performance-based pay system is rare in the Korean banking industry, so the move to adopt it will unfavorably affect the bank's employees and "drive down standards" in the sector.
Unionized workers at SC First Bank belong to the KFIU, and UNI is a global union for workers in the service industries representing 900 trade unions worldwide.
"We aim to raise global awareness and form solidarity with other Standard Chartered units in Asia that are going through the same issue," said Sung Nak-jo, a spokesman for the KFIU.
Sung said the union plans to file complaints with other international labor agencies, such as the International Labor Organization, but didn't specify a timeline.
Their action came after four labor representatives from SC First Bank flew to London last weekend to visit the headquarters of Standard Chartered to protest the bank's move.
SC First Bank is the first lender operating in South Korea to seek an overhaul of the seniority-based salary scheme, inviting strong opposition from its labor union, which says the move is aimed merely at cutting labor costs and does not jibe with Korean culture.
The filing of the complaint shows no sign of dispute resolution in sight.
On Monday, Richard Hill, chief executive officer at SC First Bank, expressed his "deepest regrets" over the inconvenience and concerns caused by the labor strike and pledged to seek an early resolution.
Hill expressed hopes that the labor union would return to the negotiating table within this week. But he was adamant about stressing the need to introduce a merit pay scheme as the bank cannot continue to pay out high salaries without its growth.
About 2,900 unionized workers at SC First Bank, the Korean unit of Standard Chartered, have been on an indefinite strike since June 27, in protest against the bank's move to adopt a performance-based pay system. The strike marked the longest walkout in the history of the local banking sector.
The Korean Financial Industry Union (KFIU) said it and UNI Global Union, a global union of service industry workers, lodged the complaint Thursday with the OECD against the British banking giant, claiming that the bank's move is in violation of the OECD's guidelines regarding multinational companies.
They said in a statement that a performance-based pay system is rare in the Korean banking industry, so the move to adopt it will unfavorably affect the bank's employees and "drive down standards" in the sector.
Unionized workers at SC First Bank belong to the KFIU, and UNI is a global union for workers in the service industries representing 900 trade unions worldwide.
"We aim to raise global awareness and form solidarity with other Standard Chartered units in Asia that are going through the same issue," said Sung Nak-jo, a spokesman for the KFIU.
Sung said the union plans to file complaints with other international labor agencies, such as the International Labor Organization, but didn't specify a timeline.
Their action came after four labor representatives from SC First Bank flew to London last weekend to visit the headquarters of Standard Chartered to protest the bank's move.
SC First Bank is the first lender operating in South Korea to seek an overhaul of the seniority-based salary scheme, inviting strong opposition from its labor union, which says the move is aimed merely at cutting labor costs and does not jibe with Korean culture.
The filing of the complaint shows no sign of dispute resolution in sight.
On Monday, Richard Hill, chief executive officer at SC First Bank, expressed his "deepest regrets" over the inconvenience and concerns caused by the labor strike and pledged to seek an early resolution.
Hill expressed hopes that the labor union would return to the negotiating table within this week. But he was adamant about stressing the need to introduce a merit pay scheme as the bank cannot continue to pay out high salaries without its growth.
