Seoul: A labor union at Kakao Corp., the operator of South Korea's popular messenger service, and the company's management failed to reach an agreement in a second round of mediation with the Gyeonggi Regional Labor Relations Commission on Wednesday, industry sources said.
According to Yonhap News Agency, the mediation procedures were initiated after the two sides could not resolve their differences during the first round of wage talks held on May 18. The failure of Wednesday's mediation grants unionized members at Kakao's headquarters the right to strike, alongside unions at four of the company's affiliates. This development raises the potential for Kakao's first-ever strike since its inception.
Last week, five labor unions voted in favor of a walkout following unsuccessful wage negotiations with management. This situation arises amidst broader demands for performance-based bonuses and profit sharing in South Korean firms, highlighted by a recent labor-management dispute at Samsung Electronics Co.
Kakao's union is reportedly aiming to have restricted stock unit grants, a form of equity compensation, included in the official performance-based incentive pool.