Kakao's labor union is pushing for joint bargaining in response to the company's plan to split into separate entities.
The Kakao chapter of the Korean Chemical, Textile and Food Workers' Union said on the 21st that it will hold a declaration ceremony for joint bargaining across Kakao affiliates and a rally backing a five-day strike at Kakao Bank at 1 p.m. at Pangyo Station Plaza on the 26th. Kakao's (035720.KS) board earlier that morning approved a plan to split the company into Kakao AI and Kakao X.
In a statement, the union said the company had cited enhancing corporate value and improving efficiency in decision-making and capital allocation as reasons for the split, but argued that "the cause of the eroded corporate value did not lie solely in its complex business structure." It added that "simply dividing the corporate entity cannot bring fundamental reform without an assessment of repeated management failures and a decision-making structure that takes no responsibility for them."
The union also criticized the process, saying, "What matters more is how workers' employment and working conditions will be protected if restructuring, sales, mergers, spin-offs or business transfers occur after the split." It added that "most employees were not given sufficient information about their own futures during this announcement, and there was no prior consultation with the union."
The union argued that the split clearly demonstrated the need for joint bargaining. "Issues such as wages and compensation, job security, and the sale and restructuring of affiliates arise at each entity, but decisions on major investments, business realignment, personnel and capital allocation are made at the level of the Kakao group as a whole," the union said. "As the decision-making structure grows more complex after the split, it will be difficult to resolve real problems if workers' bargaining structures are scattered across separate entities." The union set out a goal of creating a structure through which it can discuss matters such as accountable management, job security, and prior consultation on reorganizations, sales and spin-offs with those who actually hold decision-making authority.
Ahead of the rally, the union plans to hold an open talk session for members during lunch on the 24th to hear their views on the newly created entities and the split. Suh Seung-wook, head of the Kakao chapter, said, "Splitting Kakao in two may be the company's decision, but the company cannot unilaterally decide the changes to employment and working conditions that result from it." He added, "Even if the company splits itself apart, it cannot split off its past management failures and its responsibility to employees."
