A union chief has stated that on Monday thousands of the workers at Standard Chartered bank's South Korean unit were on strike on Monday. They had protested the management efforts to push ahead with a performance-based pay system.

Union leader Kim Jae Yul said that about 3,000 unionized workers of SC First Bank, or half its employees were on strike and protesting this system.

The Management has rebuffed to settle the annual pay rises, saying that the employees to agree to a new performance-based wage system rather than having the seniority-based compensation prevalent among South Korean firms.

Mr. Kim said that the management has clearly said to agree for new compensation system which begins in January 2012, till then it will have no discussion on pay rise.

SC First Bank which was set up in 2005 is the first bank in South Korea officially to have a performance-based pay system.

South Korean firms have been trying to change the traditional seniority-based compensation to this new system. It has also faced severe opposition from workers. The workers fear that this change would make job cuts easier.