Kakao's Labour, Management Engage In 2Nd Mediation Talks As Strike Looms

(MENAFN- IANS) Seoul, May 27 (IANS) A labour union at Kakao, the operator of South Korea's popular messenger service, and the company's management began a second round of mediation with the Gyeonggi Regional Labor Relations Commission on Wednesday, industry sources said.

The mediation procedures came after the two sides failed to narrow differences in the first round of wage talks held May 18, according to sources, reports Yonhap news agency.

If the regional labour office decides to suspend the mediation, unionized members at Kakao's headquarters will secure their rights to strike, along with unions at four of the company's affiliates.

The five labour unions had voted last week in favour of a walkout after wage negotiations with management fell through.

The latest development comes amid broader calls for performance-based bonuses and profit sharing in South Korean companies, sparked by the recent labour-management dispute at Samsung Electronics Co.

Kakao's union is reportedly seeking to include restricted stock unit grants, a form of equity compensation from the company, in the official performance-based incentive pool.

Meanwhile, Samsung Electronics' unionised workers voted to approve a wage agreement that includes a substantial bonus package for chip workers, the union said on Wednesday, easing concerns over potential disruptions to the global supply chain.

In the six-day vote, 73.7 percent of the 62,616 members of the tech giant's two largest unions approved the tentative deal. The agreement was finalized after a majority of eligible voters took part in the vote and a majority voted in favour of the proposal.

Later in the day, the two sides signed the wage agreement, with management pledging to strengthen the company's global competitiveness.

"Starting with the conclusion of this wage agreement, labour and management will work together as one to strengthen our global competitiveness," Yeo Myeong-gu, head of the company's Device Solutions division's People Team, said.

The labour union and management reached the agreement just an hour before an 18-day strike was set to begin at the world's top memory chipmaker last Thursday.

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