90 million won more on three-year one-time salary … Woori bank mystery

Woori Bank is implementing an honorary retirement at the end of the year for employees 54 and older. As the first of the four major banks, it has offered better terms than usual. To survive in the rapidly changing environment due to Crown 19 and airstrikes from big tech (big IT companies), it is predicted that every bank will have an all out battle to slim down the organization.

36 months of salary paid to those over 54

According to the banknote from the 15th, the workers and management of Woori Bank agreed to an honorary retirement plan this year and decided to accept applications from the 16th. The recipients are 54 years of age (born in 1966) or older and they pay a lump sum of 36 months’ salary. For the 55-year-old (born in 1965), who had already entered the maximum salary system, it was decided to pay 24 months to request retirement.

The amount of severance pay is similar to last year, but other conditions are expected to be added. Last year, school expenses (up to 28 million won per person up to two children), travel vouchers (3 million won), and re-employment assistance (33 million won) were paid separately to those who had been gone last year. It is reported that this year has committed to increasing the amount little by little.

The reason Woori Bank presented better terms and conditions than last year is that the need for downsizing and restructuring has grown more than ever. Woori Bank has a high labor cost ratio among the top four banks. The operating income and expenses index (CIR), which is the proportion of administrative and sales expenses (labor expenses plus rent, etc.), is 53.7% this year. Shinhan Bank (44.2%), Kookmin Bank (48.6%), Hana Bank (43.7%), etc. An executive at Woori Bank said: “Big banks must play a role in the public interest in the hiring market, so it is difficult to significantly reduce new hires. I think activating honorary retirement is the best way to restructure naturally.” .

Leave at proxy level

Starting with Woori Bank, the wind from declining notes is expected to be stronger. This is because the demand for in-store sales decreased significantly due to the Corona 19 incident and remote financing became the main trend. The rapid growth of internet banks like Kakao Bank and big tech like Naver are also a threat to the banking sector. An executive at a large bank said: “Until now, the banks have been competing with each other, but in the future we will have to fight other players who are lightweight.”

Some banks have imposed unconventional conditions in this year’s decline. The Nonghyup Bank decided to provide job change support (40 million won) and farm produce vouchers (10 million won) for the 28-month salary (based on the maximum salary system) for those who are 56 years old. age or older. SC First Bank pays a maximum salary of 38 months depending on the position. School expenses (up to two children) and initial support were also included.

Some young employees receive an honorary retirement. Busan and Gyeongnam Bank decided to pay up to 40 months of salary to people aged 50 and over, and 37 months of salary to people who received the salary of the agency (Kyongnam Bank).

Citibank Korea is reviewing honorary retirement (special retirement) for employees under the maximum salary system in six years from 2014. Shinhan, Kookmin and Hana Bank are negotiating the withdrawal and unconventional conditions are likely to arise. A commercial bank official said: “As the reemployment or entrepreneurship environment has become more difficult since Corona 19, the number of people who want to leave will be reduced under the same conditions.” Saying.

Reporter Jeong So-ram / Kim Dae-hoon [email protected]

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