Labor, gov¡¯t deal might avert bank strikes

The final negotiation to prevent banking sector strike between the financial union and the government because of expected downsizing amid mergers might have reached agreement.

Among six banks, including Kookmin, H&CB and Peace Bank, which were targeted for indefinite strikes starting Friday, four banks such as Korea Peace, Kwangju, Kyongnam and Cheju Bank might withdraw from the decision to stage a walkout.

It is, however, forecast that the strike will go on as scheduled Friday because the unions of Kookmin and H&CB will enforce the strike unless the managements don¡¯t give up the merger plans.

The government decided to use strong measures including site arrest of the leaders of the walkout and defining the walkout as illegal. Therefore some clashes are expected.

The financial industry union and government agreed with two core disputed points such as granting self-restoration opportunities to the banks to be joined a financial holding company and guaranteeing autonomy on the merger negotiation of Kookmin-H&CB at 2 a.m. Friday, after an 11 hour-long marathon negotiation.

Kim Seung-Ryun srkim@donga.com