Unionized workers at SC First Bank on Sunday said they will stage an indefinite general strike to protest management's efforts to introduce a performance-based pay system.
The labor union of the South Korean unit of Standard Chartered Plc said workers will not report to work starting Monday.
A general strike by SC First Bank would mark the first time that workers at a major South Korean lender engage in a walkout since an incident involving a strike by employees of the former Hanmi Bank in June 2004.
Union representatives claimed that despite requests, the bank's management has failed to consider views and concerns voiced by workers in regards to the introduction of a new pay arrangement.
"The final proposal forwarded by a task force on this issue is not much different from the offers made in the past," said a union representative. He also said management had sent its proposals to employees prior to holding talks with the union.
The two sides wanted to hold last-minute talks over the weekend to stave off a strike, but no meetings took place.
Related to the planned strike, SC First Bank said it planned to use all non-union workers and those who have opted not to go on strike to reduce inconveniences for bank customers.
It, however, said customers may experience delays in such areas as getting loans and being issued new credit cards. Of the 6,500 employees at the commercial bank, half are non-union members.