The head of SC First Bank said Wednesday that the lender will not re-open 42 temporarily shuttered branches until the ongoing labor strike comes to an end.

More than 2,500 unionized workers at the South Korean unit of Standard Chartered Plc. has been on strike since late June, the longest walkout in the local banking sector, in opposition to the bank’s move to adopt a performance-based pay system.

Richard Hill, chief executive of SC First Bank, said his bank will resume operations of the 42 branches only after the ongoing labor dispute is resolved.

The bank has temporarily shut down about 10 percent of its nearly 400 branches due to the labor strike.

Unionized members at SC First Bank resumed their work on Monday, but vowed to stage a slowdown at workplaces and to conduct partial strikes down the road. They kicked off a one-day walkout earlier in the day in Seoul in a show of their determination to continue the protest.

SC First Bank is the first lender operating in South Korea to seek an overhaul of the seniority-based salary scheme. Its unionized workers, who account for about half of the 6,500 bank employees, are vehemently opposing the move, claiming that it is aimed merely at cutting labor costs and does not jibe with Korean culture.

The game of chicken between labor and management is increasing inconveniences for bank customers. The bank is adamant about introducing the new pay system, saying that the bank cannot continue to pay out high salaries without growth. 

(Yonhap News)