SR, the operator of Korea's SRT high-speed rail service, announced Wednesday that it has signed its 2025 wage and collective bargaining agreement through dispute-free labor-management negotiations for the 11th consecutive year.
The company's labor and management reached a tentative agreement on January 16, and the collective bargaining proposal was approved by an overwhelming majority in a subsequent union member vote, leading to the final agreement on January 23.
Under the agreement, SR will raise wages in compliance with the government's 3.0% total labor cost increase guideline. Labor and management also agreed to incorporate government directives to strengthen operational soundness of public institutions, including restrictions on performance bonuses for employees who received severe disciplinary actions or committed serious misconduct, enhancement of job-based pay systems, and limits on supplemental leave pay for work-related injuries or illnesses.
To promote work-life balance, both sides agreed on measures including establishing a new leave system during pregnancy, expanding infertility treatment leave days, and improving the annual leave system, aiming for management efficiency while addressing Korea's low birthrate crisis.
Although the SR Labor Union had declared a breakdown in negotiations at one point, it ultimately accepted the company's mediation proposal. The union also showed willingness to cooperate on sensitive issues such as restructuring the compensation system and restricting pay for disciplined employees, leading to a dramatic resolution in support of sustainable management and improved employee ethics.
"Based on mutual understanding and respect, labor and management together considered our social responsibility as a public institution, achieving the meaningful milestone of 11 consecutive years without disputes," said Shim Young-joo, acting CEO of SR. "We will continue to provide the safest and most trusted railway service based on our mutually beneficial labor-management relationship."
