Controversy over performance pay spread to SK Telecom… Lee Seok-hee followed by President Park Jung-ho was also a test bench

Input 2021.02.05 10:25

Labor union “Reduces incentives even in room performance
Insist on reorganization of the incentive system by introducing new standards.”

Following SK Hynix’s president Lee Seok-hee, SK Telecom’s president Park Jung-ho also took the test. SK hynix (000660)The controversy over the incentive pay SK Telecom (017670)It is moving to and spreading to the entire group. SK Telecom’s union is in a situation where it has foreshadowed a violent struggle if the management does not accept the request.

On the 4th, SK Telecom’s labor union recently announced in a letter to CEO Park Jeong-ho in the name of Chairman Hyeon-hee Jeon, saying, “I can’t hold back serious concerns about the incentives that are expected to be significantly reduced from last year.”

The union argues that the scale of incentives is incomprehensible even though sales and operating profits grew significantly last year. SK Telecom announced on the 3rd that it recorded 18,624.7 billion won in sales and 1.349.3 trillion won in operating profit last year. Consolidated sales grew by 5.0% year-on-year, and operating profit increased by 21.8%.

The union said, “In recent years, members have thought that even in the case of incentives that have decreased little by little every year, it is due to the deterioration of the company’s performance.” “It won’t be.”

In addition, the union said, “There must be a plan that can be understood and sympathized by members who did their best in difficult conditions,” and instead of the existing performance-based standard of economic value added (EVA), a new standard that secured fairness and objectivity should be introduced. Demanded.

Specifically ▲ Disclosing the correlation between performance and performance pay to secure predictability and objectivity ▲ Disclosing the average amount of company-wide incentive pay to secure fairness in individual and organizational performance ▲ Complete reorganization of the existing incentive pay system, where the majority of members fall short of the average amount Presented.

However, according to the union, the management was reported to have offered welfare points to all members instead. Accordingly, the union is preparing for the struggle by convening the supreme meeting, the’Emergency National Branch Presidents’ Meeting,’ saying, “The management is ignoring its members.”

Earlier, even though SK Hynix achieved operating profits of over 5 trillion won last year, employees’ dissatisfaction is rising when incentives are set at 20% of annual salary. SK Group Chairman Choi Tae-won declared that he would return the salary he received from SK Hynix last year, and President Lee Seok-hee also apologized, but the union is talking about a strike.