Kakao Union Takes 'Log-out Day' Amid Wage Negotiation Deadlock

Unionized workers of Kakao Corp., South Korea's messenger app operator, took a day off en masse on Monday in a sign of protest amid a continued gridlock in wage negotiations.

In their second collective action, unionized members staged what they called a "Log-out Day" by taking simultaneous annual leave.

Some 2,100 workers from five units of Kakao, including its headquarters, Kakao Pay and Kakao Enterprise, have participated, the labor union claimed.

The company, however, said it estimates only 800 employees from Kakao's headquarters took part in the latest industrial action.

Wage talks between Kakao's labor union and management have been at a standstill since May, after the two sides failed to narrow differences in performance-based incentives.

The union is reportedly demanding the company pay around 13 to 14 percent of operating profit as bonuses, while the management has rejected such demands, claiming they put too much burden on the company.

On June 10, workers staged their first-ever strike. Some 1,500 union members walked out from their jobs for four hours and rallied near the company's headquarters in Pangyo, south of Seoul.

Despite concerns from industry watchers, no disruptions were reported on Monday, including in the company's key messenger service, KakaoTalk.

Kakao's management had previously said it plans to continue negotiations with the union, while remaining on standby to ensure stable service operations.