This year, the labor and management of the banking sector are unable to narrow their differences regarding the introduction of a 4.5-day workweek. The labor union argues that banks should proactively implement the system in line with the presidential campaign promise of Lee Jae-myung, but the management stance is to wait for the government's decision.
According to the financial sector on the 24th, the Financial Industry Union, the upper organization of the bank union, and the management of the banks recently held the third wage negotiation and discussed the introduction of a 4.5-day workweek.
The union stated that the banking sector should proactively lead discussions on the introduction of the system before the government legislates the 4.5-day workweek bill. The Ministry of Employment and Labor plans to establish the 'Act on Support for Reduction of Actual Working Hours (tentative)' as early as the second half of this year for the introduction of a 4.5-day workweek.
On the other hand, management is reported to have taken a cautious stance, asserting that government policy must precede. Management has pointed out that side effects of implementing the system must also be considered. The union is determined to ensure the introduction of a 4.5-day workweek in the current negotiations. Consequently, the reduction of working hours has emerged as a core issue in labor-management negotiations within the financial sector. The next negotiation is scheduled for the 26th.
The 4.5-day workweek gained momentum as both the Democratic Party of Korea and the People Power Party pushed for it as part of their campaign promises in the recent presidential election. President Lee has pledged to reduce Korea's average working hours to below the Organization for Economic Cooperation and Development (OECD) average and plans to implement a 4-day workweek in the long term after introducing the 4.5-day workweek.
The financial union also aims to ultimately introduce a 4-day workweek. The financial union and the Democratic Party of Korea reached a policy agreement before the presidential election, including provisions to establish a system for reducing working hours, including the introduction of a 4.5-day workweek through 'social public discussion processes.'
In the financial sector, there is a prevailing analysis that the union holds an advantage in negotiations surrounding the 4.5-day workweek. Political and business circles also identify the banking sector as the first industrial sector to introduce the 4.5-day workweek. Previously, the banking sector was the first among all industrial sectors to implement a 5-day workweek before legislating it in 2002.
Concerns about the potential side effects of the 4.5-day workweek are being raised in the business and financial sectors. Recently, as China has rapidly emerged as a manufacturing powerhouse, there are worries that reducing working hours will inevitably lead to a decline in international competitiveness.
A business sector official noted, 'Especially in manufacturing, the working hours of employees translate directly into sales,' adding, 'Domestic manufacturers will struggle against the onslaught from China. They will have no choice but to either move abroad or close their business.'
The banking sector faces a situation where it must consider public interest alongside productivity decline. An official from the banking sector stated, 'It must not be overlooked that public interest in banks is being emphasized lately,' and added, 'If working hours are reduced, there could be inconvenience for customers, and the convenience of vulnerable groups such as the elderly and people with disabilities, who primarily use branches, must also be considered.'