[THE INVESTOR] The dispute over performance-based salary system is growing with South Korea’s largest umbrella labor unions set to stage mass rallies and strikes.

The hardline Korean Confederation of Trade Unions will hold a rally in Seoul on Sept. 28. The Federation of Korean Trade Unions will follow suit the next day.

The KCTU will rally in Seoul’s Yeouido with 16,000 members marching to the ruling Saenuri Party’s. In addition, unions belonging to the Korean Metal Workers’ Union will strike across the country. Companies affected by the KMWU strike include Hyundai Motor, Kia Motors and a number of shipbuilders. The union estimates that 85,000 members will participate in the strikes. 

The KMWU strike will be joined by Hyundai Heavy Industries union, which does not belong to an umbrella group.

On Sept. 29, public sector unions belonging to the two umbrella groups will gather in Seoul.

For its part, the government plans to deal sternly with any illegal strikes.

“Illegal strikes will be judged sternly according to law, and the principle of ‘no work, no pay’ will be applied,” Minister of Employment and Labor Lee Ki-kweon said at a government response meeting on Sept. 28.

By Choi He-suk (cheesuk@heraldcorp.com)