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With Naver’s record-high performance last year, labor-management conflict continues over the standards for paying incentives for employees.
According to the IT industry on the 16th, the Naver union (Naver branch of the Korean Federation of Trade Unions, chemical fiber food union) sent an e-mail to all executives and employees on the 6th of this month stating, “Disclose the standards for calculating performance pay transparently.”
Although Naver posted its record high performance last year due to the non-face-to-face wind, the incentives paid were less than that.
The union is said to have requested an improvement in the fact that the standards for paying incentives are completely private.
In response, Naver said, “We are explaining the criteria for paying incentives through a letter from the CEO or through individual interviews with the head of the organization.”
Naver posted a consolidated sales of 5 trillion and 31 trillion won and an operating profit of 1 trillion 2153 billion won last year. This is an all-time high, up 21.8% and 5.2%, respectively, from 2019.
The management is known to have explained that the criteria for paying incentives are’similar to the previous year’.
In addition, when the union sent an e-mail to all employees, the management sent an official letter saying that it was’use of e-mail irrelevant to work’ and demanded a recall, showing signs of intensifying conflict. However, the management argued that the e-mail was not related to the controversy.
Recently, several companies, including SK Hynix, Samsung and LG, have caused friction between labor and management over performance pay standards.
/ Reporter Juwon Lee [email protected]
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