Kakao Enterprise's labor union has secured the right to industrial action after the Gyeonggi Regional Labor Relations Commission suspended its mediation process.
The Kakao branch of the Korean Federation of Chemical, Textile and Food Workers' Unions said Wednesday that negotiations at the Gyeonggi Regional Labor Relations Commission failed to reach an agreement. Five Kakao affiliates — Kakao Enterprise, Kakao, Kakao Pay, DK Techin and XL Games — had earlier applied for mediation after collective bargaining talks between labor and management broke down.
A suspension of mediation is issued when the labor commission determines that further mediation is difficult due to wide gaps between labor and management. Once mediation is halted, the union gains the right to take industrial action, including work slowdowns and strikes. Kakao's labor and management reportedly failed to reach an agreement on issues including the performance-based bonus structure, long-term service compensation and minimum hourly wages.
The union plans to decide whether to strike through a vote of its members. Mediation procedures for Kakao Pay will be held Thursday, while those for Kakao, XL Games and DK Techin are scheduled for Sunday. A rally to declare the union's struggle will also be held at Pangyo Station Plaza on Nov. 20.
