[Alpha Biz= Kim Jisun] The labor unions of Naver and Kakao are set to begin wage negotiations this month, with both companies having achieved solid financial performance last year. This positions the unions to strengthen their bargaining power.
Both unions declared last year that they had secured majority membership among headquarters employees. However, Naver has yet to officially recognize its union as a "majority union," making this a potential point of contention during negotiations.
According to industry sources on Tuesday, Kakao's union, known as "Crew Union," recently held an initial meeting with company representatives. This year, Crew Union plans to prioritize wage negotiations rather than broader collective agreements. A union spokesperson stated, "Last year's collective agreement was finalized, so this time, we will focus solely on wage negotiations."
Last year, Kakao and Crew Union agreed to increase the "Merit-based Pot (MP)"—a budget allocated for salary adjustments based on performance ratings—by approximately 3.4% for employees who received mid-level ratings. With improved financial results expected for 2023, the union's negotiating position is likely to strengthen. Market analysts forecast Kakao's 2023 revenue to reach 7.91 trillion KRW and operating profit to hit 460.9 billion KRW, representing year-on-year growth of 4.7% and 11.8%, respectively.
Crew Union has already been recognized as a majority union, further bolstering its bargaining leverage. In October last year, the union announced that more than half of Kakao’s headquarters employees had joined.
Last month, Kakao completed the process of confirming the union's majority status, granting the union the authority to appoint worker representatives to labor-management councils and negotiate on behalf of all employees.
Naver's union, "Joint Statement," is also scheduled to conduct wage negotiations with Naver headquarters this month. The negotiations will extend to six subsidiaries, including Naver Cloud, Naver Webtoon, Studio Lico, Snow, and Naver Z. Other affiliates, such as Line Plus, will address both wage and collective agreements this year.
Naver is projected to report record-breaking revenue and operating profit for 2023, drawing significant attention to this year's wage increases. Last year, Naver's headquarters agreed to a 5.8% salary increase.
A key issue in the negotiations will be the recognition of Joint Statement as a majority union. In November, the union declared its majority status, but Naver's management reportedly disputes the claim, arguing that executives should also be included in the employee count for majority calculations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
