KEB Credit Service agrees with union.

(From The Korea Herald)

By Lee Kyoung-ah Korea Exchange Bank Credit Service Co. announced Saturday that it had reached an agreement with its striking union workers to scale back layoffs to 35 percent of the work force in an effort to smooth the merger with its parent bank.

KEB Credit Service, the credit-card subsidiary of Korea Exchange Bank controlled by Lone Star Funds, a U.S. private equity firm, said it decided to implement fewer staff cutbacks from 40 percent to 35 percent and pay early retirement benefits equal to 13 months' salary to those who apply for the offer by the extended deadline of midnight on Saturday.

In return, the union agreed to end a strike that has lasted for two and a half months and allow 30 essential computer operations staff to return to work immediately and let other employees return tomorrow.

KEB Credit Service's initial plan was to cut 54.7 percent of its work force and pay allowances equal to 12 months' salary to those who applied for early retirement by the original deadline of noon Wednesday last week.

But after lengthy negotiations held overnight Wednesday, the management of the troubled credit-card company reduced the job cuts to 40 percent from 54.7 percent and extended the deadline to midnight on Thursday.

However, despite the reduction to 40 percent, the union continued with its strike and the Korea Confederation of Trade Unions, the second- largest nationwide labor group, backed the union and threatened to boycott KEB. The company further reduced the job cuts to 35 percent, or 231 of its 662 employees, and added one month's salary to the early retirement package.