Input 2021.02.05 15:00 | Revision 2021.02.05 17:13
Airline “Performance Pay is Taboo”… Samsung Heavy and Daewoo Shipbuilding, unpaid for years
lately SK hynix (000660)Wow SK Telecom (017670)While labor and management are having a conflict over the issue of incentives, a response of’sound of fullness’ comes out among employees of other large companies who have not received incentives. Some companies have not received incentives for several years due to the long-term recession, and some companies have a phenomenon of’performance pay polarization’ depending on the department.
According to the business world on the 5th, the oil refinery industry, which normally paid 300-400% of the basic pay, decided not to pay the bonus this year. This is because the boom that has continued in recent years has been sharply declined, and last year’s sales have declined significantly due to low oil prices. It is estimated that the four oil refineries’ accumulated losses last year amounted to 5 trillion won.
Industry leader SK innovation (096770)In the case of this year, it received attention from the industry by paying 850% of the basic salary last year, but recorded an operating deficit of about 2.5 trillion won last year and decided not to pay incentives this year. Before the Lunar New Year, SK Innovation decided to give encouragement money and meat to employees instead of incentives to encourage them.
An S-Oil employee said, “Three years ago, we had an incentive pay feast of up to 1000% of the basic salary, and now the good times from our main business to deficit are over.
It is also difficult to expect incentives for the aviation industry, which is suffering from the’worst barley pass’ due to Corona 19. Korean Air (003490)Last year recorded an operating profit of 238.3 billion won. It decreased by 17% compared to the previous year’s operating profit of 286.4 billion won, but it achieved a surplus amid the Corona 19 crisis. However, since executives have returned wages since April of last year and employees have been on sequential unpaid leave, the incentive pay has become a “taboo”. In the meantime, Korean Air has paid incentives up to 100% of monthly salary by excluding interest expenses from operating profit.
Asiana Airlines (020560)In the case of, incentives have not been paid for 10 years since March 2011. Asiana was given a small amount of encouragement for three years from 2012 to 2014 according to labor-management agreements. As of the end of the third quarter of last year, Asiana’s debt-to-equity ratio was 2432%. Inside Asiana, it is predicted that incentives can be expected only after the merger with Korean Air is completed and the aviation industry normalizes.
In the case of shipbuilding and heavy industries, where the industry remains sluggish, few companies pay incentives. Only Hyundai Heavy Industries, which is considered a strong traditional union, is being paid annually despite deteriorating profitability. Samsung Heavy Industries (010140)and Daewoo Shipbuilding & Marine Engineering (042660)Has not been paid incentives for several years.
Even within the same group companies, there are also times when the rewards are divided by performance pay. LG Electronics (066570)In the case of, incentives of up to 500% of the basic salary were paid according to the management performance of each business organization. However, mobile phone and auto parts organizations that recorded a deficit did not pay incentives and delivered an encouragement of 1 million won. The smartphone (MC) division, which recorded a deficit in the 23rd quarter, has not been receiving incentives for several years.
An employee of a large company said, “Because incentives are usually included in the annual salary, so if the incentives are reduced or not released, it is the same as a decrease in annual salaries.