Korea Exchange Bank union warns of strike

Workers plans to stop takeover by Hana as it will probably implement a massive reorganization that involves downsizing.

The labor union of Korea Exchange Bank (KEB) is planning to go on strike, immediately after Hana Financial Group takes over the bank, a source at KEB recently told The Korea Times.

The source said that all unionized personnel, including those working in overseas branches, have vowed to join the action, bringing the bank’s operations both domestically and overseas to a standstill.

The strike plan has been prepared in advance through consultations among union representatives to prevent Hana from taking over KEB, he said on condition of anonymity.

Unions have played the role of spoiler in previous acquisition processes, one notable case being the takeover of Koram Bank by Citibank.

Although the strength of the Korean labor movement has been weakened, its influence has proven to be strong enough to adversely affect any acquisition process, analysts say.

Meanwhile, the union officially says that it is planning other measures to make it difficult for Hana to take over KEB.

View the full story in Korea Times.