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State-run policy lender, the Export-Import Bank of Korea (Eximbank Korea), decided Monday to offer incentives and penalties to their employees based on their performance, becoming the last of nine public financial firms here to introduce the so-called performance-based wage system.
The decision, however, may face strong resistance, if not a legal battle, from unionized workers as it was made solely by the bank's board of directors.
The decision came one day before the deadline set by the country's top financial regulator, the Financial Services Commission. Eight other public financial companies, including another policy lender, the Korea Development Bank, had already decided to introduce performance-linked wage systems.
Under the Eximbank's plan, up to 30 percent of a worker's annual salary will be based on his or her performance, while the highest amount of performance-linked pay will be twice the lowest amount, bank officials said.
Those subject to a performance-based wage system will also be expanded to include all officials in junior managerial posts or higher, while the current system only includes section chiefs.
The government and the top financial regulator have expressed a view that the introduction of the performance-based wage system did not require labor consent, but some of labor unions at the nine public financial firms are reacting with anger, also threatening legal battles.
Amid a growing controversy over the new government-backed wage system, the political parties are also beginning to get involved, with the main opposition Minjoo Party setting up a special task force. (Yonhap)
The decision, however, may face strong resistance, if not a legal battle, from unionized workers as it was made solely by the bank's board of directors.
The decision came one day before the deadline set by the country's top financial regulator, the Financial Services Commission. Eight other public financial companies, including another policy lender, the Korea Development Bank, had already decided to introduce performance-linked wage systems.
Under the Eximbank's plan, up to 30 percent of a worker's annual salary will be based on his or her performance, while the highest amount of performance-linked pay will be twice the lowest amount, bank officials said.
Those subject to a performance-based wage system will also be expanded to include all officials in junior managerial posts or higher, while the current system only includes section chiefs.
The government and the top financial regulator have expressed a view that the introduction of the performance-based wage system did not require labor consent, but some of labor unions at the nine public financial firms are reacting with anger, also threatening legal battles.
Amid a growing controversy over the new government-backed wage system, the political parties are also beginning to get involved, with the main opposition Minjoo Party setting up a special task force. (Yonhap)
