Korean Air (003490.KS) has averted its first pilot strike threat in 11 years.
The airline's pilots' union withdrew its request for labor dispute mediation after accepting a recommendation from the Seoul Regional Labor Relations Commission, according to aviation industry sources on the 7th.
The commission concluded that normal labor-management negotiations would be difficult if the pilot seniority issue arising from the merger between Korean Air and Asiana Airlines (020560.KS) were placed on the collective bargaining agenda, sources said. The commission then persuaded the union to withdraw its mediation request and proceed with talks excluding the seniority question, producing the recommendation.
The union had filed for labor dispute mediation with the Seoul commission on Sept. 7, after collective bargaining and wage negotiations failed to reach an agreement. It was the union's first such filing since December 2015. The union staged a seven-day strike in December 2016 after failing to narrow differences with management in the 2015 wage talks.
Under the recommendation, Korean Air and the union plan to continue negotiations through Oct. 27 to conclude the 2024 collective bargaining agreement and the 2025 wage agreement. The deadline can be extended by mutual agreement, and the two sides agreed not to address seniority matters during this period.
"We will maintain the principle that seniority falls under the company's exclusive personnel authority while engaging in good faith in future negotiations," a Korean Air official said.
