[Alpha Biz=(Chicago) Reporter Kim Jisun] Wage negotiations between Ourhome's labor and management eventually broke down.

Labor and management have held 12 rounds of wage negotiations since April, but failed to reach a compromise as there was a wide gap in views on wage hikes between the two sides, and the union demanded the payment of incentives according to Ourhome's maximum performance last year.

According to the food industry on the 17th, the Our Home union filed for mediation with the National Labor Relations Commission on the 14th. An application for mediation is filed in the event of a labor dispute between the union and the employer due to conflicting claims on the determination of working conditions, such as wages, working hours, welfare, dismissal, and other treatment, and the union may engage in a dispute after going through the mediation procedure.

The National Labor Relations Commission will adjust wage negotiations between labor and management of Our Home by the 24th. If the National Labor Relations Commission decides to suspend it during the adjustment period, the union can gather opinions from some 1,300 union members to vote for and against the dispute and then legally go on strike.

It remains to be seen whether the two sides will be able to reach a settlement through the adjustment of the National Labor Relations Commission. There is a big difference between the two sides. Our Home union demanded an annual salary increase of 8.5% and a fixed amount of 2 million won this year. The union is also demanding that the government pay 1 million won in incentives for achieving its highest performance last year.

The management proposed a 1 million won fixed increase as the final draft, along with a 1.9% increase. If the two sides' demands for a wage hike are calculated at the rate of increase, the union is said to be about 13 percent and the management is about 4 percent, with a 9 percent difference.

The two sides have held 12 official wage negotiations and several working-level negotiations since April, but failed to narrow differences.

Ourhome's consolidated operating profit last year was 53.7 billion won, up 109% from the previous year. During the same period, sales rose 5.44 percent to 1.8354 trillion won and net profit rose 425.3 percent to 25.5 billion won.

 

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