Management at Standard Chartered First Bank Korea is pinning hopes on a compromise with unionized workers to end their months of labor strikes.

The hope for settlement of the labor dispute that started on June 27 over the company’s move to introduce a performance-based wage system is coming as the government’s labor agency is set to mediate the confrontation on Thursday.

While the ongoing walkout at the commercial bank has been underway for more than 50 days, the Seoul Office of the Ministry of Employment and Labor will step in to mediate the dispute, bank officials said Wednesday.

“It is true that there are few signs of compromise between labor and management for now as the union head have not attended the negotiating table for more than two weeks,” a spokeswoman said.

But she hinted at possible progress in their negotiations if a breakthrough in the deadlock could be made in the near future, noting that SC First Bank CEO Richard Hill met Lee Yong-deuk, president of the Federation of Korean Trade Unions on Tuesday.

“Following the meeting with FKTU president, we are laying out hope on the coming mediation effort from the Ministry of Employment and Labor.”

There were reportedly fruitful discussions between the bank CEO and FKTU leader, according to bank officials.

But the situation is still uncertain as former arbitration efforts from financial regulators, the Korea Federation of Banks, and the Korea Financial Industry Union had already failed.

The strike of about 2,600 of its 6,500 workforce to protest against the proposed introduction of a performance-based pay system and several others have been dragging out, recording the longest one in the local financial industry.

They are reportedly poised not to yield to any pressure from the management as long as their demands are not accepted.

While the management said the bank has made concessions in the proposed performance-based pay system, the union downplayed the move.

The management said the introduction of the new system will be further discussed at the coming task force, the union said they regard the task force as a cursory process to implement the system from next year.

If the system is introduced, SC First Bank will become the first bank in the country to abandon a seniority-based pay scheme for competitive salaries.

While about 2,700 union members initially attended the walkout in a city in Gangwon Province, more than 100 employees have returned to work.

There is a possibility that the dispute could enter a more critical phase. A union leader has argued that the negotiations came to a standstill due to the insincere stance of the management.

“The remaining unionized workers seem to head for a protracted strike,” an industry source said.

He predicted that the union will possibly move to stage a sit-in protest around the operating branches nationwide or the headquarters in downtown Seoul if the coming mediations also come to nothing.

By Kim Yon-se (kys@heraldcorp.com)