Standard Chartered's South Korean banking unit plans to suspend operations at 43 of its 392 branches from Monday should it fail to reach an agreement with the striking labour union this weekend, following two weeks of workers' strikes over a new pay scheme.
SC First Bank said in a statement that the suspension was designed to prevent any risk of overburdening the remaining workers and to provide services efficiently. Around 40 percent of the bank's total workforce have been on an indefinite strike since June 27, sparking the first industrial action at the bank since the British lender acquired it in 2005.
The two sides have been tussling over the company's desire to move to a performance-based wage system that will make SC First the first bank to adopt such a programme in South Korea. The unprecedented strike, which also marks the worst labour dispute in Korea's banking sector in seven years, is one of the challenges to confront SC First Bank in competition with home-grown banks.
South Korea is the second-biggest consumer banking market for Asia-focused Standard Chartered, but the fourth-biggest by profit after India, Hong Kong and Singapore. SC First Bank added that ATM services at all branches and online services would operate as normal.