"Headquarters Must Step In to Negotiate" ... Pangyo IT Industry's Labor Disputes Drag On

[Financial News] The labor front in the IT industry centered on Pangyo is widening. What began as a clash between labor and management over wages and performance-based compensation has spread into strikes, and is now expanding into management issues such as corporate splits and group-level bargaining structures.
In particular, the debate over the parent company's employer responsibilities is spreading to the platform sector after the Yellow Envelope Act, which allows bargaining responsibility to be assigned to the party that effectively determines working conditions even without a direct employment contract, took effect in March.

The Kakao branch of the National Chemical, Textile, and Food Industry Labor Union held a rally and press briefing titled "Declaration of Joint Bargaining Against Kakao's Split" at Pangyo Station Plaza in Seongnam on the 26th, launching a full-scale campaign against the planned spin-off. It was the first large-scale gathering since Kakao announced on the 21st that it would split into Kakao AI, focused on AI and platform businesses, and Kakao X, centered on investment and affiliate management.
Seo Seung-wook, head of the Kakao branch, said, "Responsible management, management reform, job stability, prior consultation on organizational restructuring, and the basic direction of the compensation system are all agenda items for joint bargaining." He added, "Today we will deliver our joint demands to the company and request negotiations."


The Kakao union is calling for joint bargaining because it believes repeated management failures, restructuring, job insecurity, and opaque compensation problems will not be resolved simply by separating the company into different legal entities.
The problem arises at individual affiliates, but major decisions are made at the group level, so the union says bargaining must cover the entire organization.
The union plans to persuade NPS and individual shareholders alike to rally opposition votes at the General Meeting of Shareholders. Seo explained, "Because this spin-off proposal is a special resolution item, it can be rejected if more than one-third of the voting rights present vote against it."
As anxiety grows over employment and affiliate sales after the split announcement, the conflict is expected to last longer. Seo said, "Union membership is increasing, especially at Kakao entities and affiliates that will be absorbed under Kakao X." He added, "Because the staffing plan and the division of work within the CA Council have not been disclosed, there are growing concerns about additional affiliate sales and business restructuring." A KakaoBank strike rally was also held at Pangyo Station that day. After two one-day strikes, the union plans to launch a full-scale five-day general strike from the 31st through the 4th of next month.

As the conflict over Kakao's spin-off spreads, calls are also growing at Naver for a restructuring of the group-level bargaining framework.
On the 20th, the Naver branch demanded that headquarters engage in unified bargaining covering 16 affiliates. The union said that although 150 rounds of negotiations were held across the 16 affiliates over the past year, the same pattern kept repeating: the affiliates could not make any decisions until headquarters reached an agreement.
Naver's union differs from Kakao's in that it wants to merge the existing company-by-company bargaining into a single framework. Still, both sides are demanding direct negotiations with headquarters, which they see as the real decision-maker.
The NAVER Z union, which is in conflict over a wage freeze, has also secured the right to strike. If management does not provide a responsible response by the end of this month, it plans to designate the 9th of next month as "Z Action Day" and move ahead with collective action, including a strike.
This year's labor disputes in Pangyo are spreading beyond wages and welfare to conflicts over organizational restructuring, governance, and the parent company's employer responsibilities. With a full KakaoBank strike and collective action by NAVER Z also looming, labor-management tensions in the IT industry are expected to continue into the second half of the year.
[email protected] Choi Hye-rim Reporter