Officer Branch “Proceeding the Personnel Assessment Litigation this Week”
“Introduced by the company three years ago, belated consent procedure”
“Absolute evaluation that randomly evaluates achievements, it’s not fair”
SK Hynix headquarters in Icheon, Gyeonggi-do/Photo provided by SK Hynix
SK hynix barely caught the’performance pay controversy’(142,500 +0.71%)This time, he is in danger of being sued in relation to’personnel evaluation’. SK Hynix’s office workers’ union (union) decided to change the management’s personnel evaluation system and enforce a related group lawsuit.
According to the industry on the 2nd, the SK Hynix Technology Officer Branch announced in a notice sent to the union members the day before, “This week we have decided to proceed with a lawsuit in relation to the’Self-Design’, which is the personnel evaluation system for technical office workers.”
The self-design system was introduced in 2018 by SK Hynix to calculate the annual salary by calculating the standard salary and achievement salary. Unlike production workers, it is an absolute personnel evaluation system that is applied mainly to technical office workers who are doing work-oriented work.
SK hynix technical office workers receive achievement money in addition to the standard salary, and the amount is determined by dividing the standard salary by 12 and multiplying the application rate of the achievement salary.
However, with the introduction of the self-design system, the labor union argues that the rate of application of the set performance pay has been arbitrarily calculated by the management. In addition, the union’s position is that the intention of the employees was excluded at the time of the introduction of the system, such as the management of the system, which had been implemented since three years ago, followed the employee consent procedure again late in the beginning of this year.
The union, which judged that the self-design system was in violation of the current labor law, filed a complaint with the Gyeonggi Regional Labor Committee in December last year for violating the Labor Standards Act. After that, the company sent officials several times and requested a labor inspector from the Ministry of Employment and Labor.
On the other hand, SK Hynix is in a position that it has introduced a self-design system by reflecting employee complaints about personnel evaluation. It is explained that it was introduced to resolve the dissatisfaction of most executives and employees about the performance pay system at the time, which was formulated as a relative evaluation and opinions posted on the’Junior Board’, which discusses the company’s personnel evaluation system at the company level in 2017.
SK hynix has temporarily implemented the self-design system for some organizations from 2018, and then applied the system to the entire company in earnest in 2019. Since then, it is explained that SK hynix has steadily improved self-design by listening to the voices of employees at the company level every year.
As such, it is difficult for the branch to find a point of consensus, so it is interpreted that the lawsuit is enforced. However, both sides are in the position that they will also promote system improvement through communication apart from the lawsuit.
SK Hynix is a multi-union system. It is divided into a technical office worker union under the KCTU, which was established in 2018 with a focus on university graduate research and development (R&D) occupations, and an Icheon-Cheongju full-time (production worker) union under the Korean Federation of Trade Unions, an official bargaining organization. Of the 40,000 employees of SK Hynix, the number of employees currently enrolled in the technical office worker union is known to be around 1,000.
Earlier, on the 10th of last month, through a full-time union and the central labor-management council, SK hynix changed the △excess profit distribution (PS) payment standard to operating profit instead of the existing economic value added (EVA) and used 10% of operating profit as PS resources △Base salary 200 We have confirmed plans to pay employee stock ownership equivalent to% and pay welfare points.
The reason that the management and the labor union agreed to change the PS calculation standard was when the company announced at the end of January that 400% of the amount equivalent to one twentieth of the employee’s annual salary was paid to last year’s PS. Even though last year’s operating profit surged more than 80% year-on-year, employees were greatly dissatisfied with the fact that they received the same level of incentives as in 2019 and how the PS was calculated, which was not disclosed to the outside.
Accordingly, SK Group Chairman Choi Tae-won and SK Hynix President Lee Seok-hee communicated directly with employees, and the company settled the PS controversy through labor-management meetings held twice on the 4th and 10th of last month. However, it is the position of the technical office workers that the discussion on the improvement of the self-design system was not conducted properly.
Seongsu Bae, reporter Hankyung.com [email protected]