The Industrial Bank of Korea (IBK) and Citibank Korea are planning to give their indefinite term workers (3000 in the former, 300 in the latter) regular employment. This is in line with President Moon’s policy to reduce the number of irregular workers.
Citibank Korea recently announced that it “will convert about 300 contract tellers and general administrative employees to regular employment.” These 300 workers will hold the same position as regular workers (class 5) by the end of this year. The bank has been changing a number of indefinite term workers which equals to 20% of regular workers newly recruited each year, but the bank decided to change all the indefinite term workers into regular workers.
A spokesperson from Citibank Korea explained that “under the bank’s seniority-based wage systems and progressive stage system for severance pay, the change has been made according to an agreement between labor and management on handling of non-regular workers every year. However, the bank decided to give regular employment status to more indefinite term workers as it pursues the related benefits for a broader number of its workforce.”
The IBK, a government-run bank, established a taskforce in the 2nd half of 2016 and discussions have continued between labor and management. IBK’s movement to convert the status of its non-regular workers to regular employment will gain additional momentum with the new government’s policy. The total number of indefinite term workers in IBK was 3000 as of the 1st half of 2016, with the bank’s president implying his willingness to convert a greater number since he took the helm.