[비즈한국] The conflict between OK Financial Group and its labor union remains at a standstill. Although the OK Financial Union (a branch of the Korean Financial Industry Union) was established in August 2020, it has not been recognized by the company and has faced difficulties in negotiations. The union filed a request for relief for unfair labor practices with the Seoul Regional Labor Relations Commission last June, alleging that the company was engaging in bad-faith bargaining and refusing to acknowledge union activities. However, the recent dismissal of this request suggests that the conflict is likely to persist.
It has been confirmed that the request for relief for unfair labor practices—actions by an employer that interfere with the collective activities of workers—filed by the OK Financial Union against OK Financial Group was dismissed on August 19. The decision was reached two months after the application was filed on June 19. The grounds for dismissal will be specified in the written decision, which will be sent within 30 days of the ruling. The union plans to appeal to the National Labor Relations Commission after receiving the document.
On June 19, the OK Financial Union held a press conference in front of the Seoul Regional Labor Relations Commission, stating, "A company's refusal or neglect of collective bargaining without justifiable reason is a criminal offense under the Trade Union and Labor Relations Adjustment Act." They urged the company, saying, "If you do not want to be punished for unfair labor practices due to bargaining negligence, sign a collective agreement that includes wage increases and guarantees union activities."
The OK Financial Union emphasized that since its launch in August 2020 and its affiliation with the Korean Financial Industry Union in June 2021, the company has never once proposed a wage increase. OK Financial has frozen employee wages for three years since June 2021. Furthermore, although the union has existed for over four years, the company has yet to provide a time-off system for union officials or even an office space, effectively refusing to recognize the union.
Although the request for relief regarding unfair labor practices was dismissed, the union views the situation as having achieved some results. Bong Seon-hong, head of the OK Financial Group Union branch, stated, "The purpose of the filing was to have unfair labor practices recognized and to secure wages that employees have not received." He added, "The company has decided to pay out employee stock repurchases and 20th-anniversary rewards, which it had previously delayed. At the labor commission, the company emphasized that the wages paid this year exceeded the amount of a base salary increase." He continued, "We believe the primary goal has been achieved as employee wages have increased. We will argue the details further at the National Labor Relations Commission."
The dismissal by the Seoul Regional Labor Relations Commission contrasts with the Gyeonggi Regional Labor Relations Commission, which previously recognized similar cases as unfair labor practices. The Costco Union (a branch of the Korean Mart Workers' Union) held collective bargaining with Costco Korea twelve times between February and September 2021, and six times between September 2023 and January 2024. When the company failed to actively provide alternatives to the union's proposals, the union filed for relief for unfair labor practices with the Gyeonggi commission, which ruled in their favor on March 14 of this year.
At the time, the Gyeonggi commission stated, "The employer appears to have taken a passive stance regarding the union's request to adjust the time-off system, citing Costco's basic global policy of 'no work, no pay'." The commission added, "There was sufficient time to reach an agreement or at least bridge the gaps on contentious issues, but the employer's actions appear to be a case of bargaining negligence, and it is difficult to find a justifiable reason to rationalize their attitude toward collective bargaining."
However, the recognition rate for unfair labor practice cases by labor commissions is generally low. From January to August 2023, the recognition rate by the National Labor Relations Commission was only 15.9%. According to People's Solidarity for Participatory Democracy, the recognition rate for unfair labor practices at regional labor commissions was only 10.3% as of 2020.
The two sides have also recently clashed over representative bargaining. The union requested representative bargaining four times between July 10 and August 16, but the company refused, citing scheduling issues, leading to a confrontation between the union and company representatives at OK Financial's headquarters.
Meanwhile, the union continues to pursue a truth-finding investigation into OK Financial Group's operation of its lending business. The core of the allegation is that when OK Financial Group acquired a savings bank in 2014 to enter the secondary financial sector, financial authorities conditioned the acquisition on the closure of its lending business. However, it is alleged that the group violated these conditions by continuing lending operations through a family company owned by Chairman Choi Yoon. In relation to this, a debate titled "Is the Competency Review for Major Shareholders of Financial Institutions Currently Sufficient?" will be held on September 5 at 10 a.m. in the 4th Conference Room of the National Assembly Members' Office Building, where financial authorities are expected to participate and discuss the matter.
On July 3, the union, along with National Assembly members Shin Jang-sik (Rebuilding Korea Party) and Park Hong-bae (Democratic Party of Korea), held a press conference "calling for the investigation of illegal allegations against OK Financial Group," urging for inquiries into △operating a lending business through companies not reported to financial authorities, △funneling internal work to affiliates during the restructuring of lending assets, and △allegations of illicit profit-seeking by the group's leadership.