Financial trade union threatens to launch strike next week

The Korea Financial Industry Union (KFIU) has threatened to launch a general strike beginning next week at the earliest if banks merge and cut jobs under government pressure.

At a news conference held Tuesday with the labor union chiefs of 10 banks, the KFIU said it would summon a delegates' meeting on Wednesday to determine whether and when to declare the launch of the strike. The 10 banks are subject to government-led restructuring of the financial sector. The KFIU said that its member unions already approved the walkout proposal at meetings held Monday. The umbrella union argued that by forcing the bank mergers, the government is violating an agreement signed with unionists last July.

In the July agreement, the government dismissed the possibility of forced bank mergers and promised to honor each bank's labor-management accord in the course of undertaking structural reforms and downsizing financial institutions. The KFIU said the tripartite panel of the labor, management and government should be called immediately to discuss restructuring of the banking sector.