(LEAD) Seoul Metro labor, management reach wage deal to avert strike

▲ Unionized Seoul subway workers hold a rally in downtown Seoul on Nov. 15, 2023, to announce their decision to go on a general strike over a manpower reduction plan. (Yonhap)

(LEAD) Seoul subway-strike

(LEAD) Seoul Metro labor, management reach wage deal to avert strike

(ATTN: RECASTS headline, lead; UPDATES with more info in paras 1-2,6-7)

SEOUL, Nov. 21 (Yonhap) -- Unionized workers of Seoul Metro, the operator of subway lines 1-8, reached a wage and collective agreement with the management Tuesday, pulling back its plan to hold an all-out strike the following day.

The agreement was reached at the company headquarters in eastern Seoul at around 9:30 p.m. following marathon negotiations, according to union and company officials.

The biggest of Seoul Metro's three labor unions, which is affiliated with the militant umbrella Korean Confederation of Trade Unions (KCTU), has threatened to launch an indefinite all-out strike on Wednesday in protest against the company's downsizing plans.

The KCTU-linked union already staged a two-day "warning" strike early this month in protest of the city-run company's bid to reduce its workforce by 13.5 percent, or 2,212 employees, by 2026 to address its chronic deficit.

Seoul Metro, saddled with a cumulative deficit of 18.4 trillion won (US$14 billion), has said downsizing is inevitable to normalize management, while the labor union claims a drastic cut in the workforce could lead to safety issues.

After reaching the deal, the labor union said the two sides will "continue discussions after 660 new employees are hired this year" in a press statement.

The company reportedly offered to increase the number of new recruits this year by 272 to 660, but the KCTU-affiliated union rejected the proposal, demanding a hiring increase of 868 by year's end in consideration of additional vacancies resulting from retirement.

The KCTU-affiliated union has the largest number of members, with the two others not joining the warning strike.

The Seoul city government and Seoul Metro have vowed to respond sternly to illegal strikes under the principles of zero tolerance and "no work no pay."

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