SK Telecom’s office building in Euljiro, Jung-gu, Seoul. Provided by SK Telecom
SK Telecom, which was recently caught up in controversy over incentive pay, pays 8 million won for wage negotiations to all employees in a lump sum. It is interpreted as a measure to soothe employees and block the outflow of talent amid successive wage hikes in the Internet and game industries.
According to the telecommunications industry on the 8th, SK Telecom has tentatively agreed to pay 8 million won to all employees in the name of the settlement payment for wage negotiations at the’Labor-Management Joint Task Force (TF)’ for wage negotiations. The final decision will be made on the 11th by a general vote of the members.
The settlement fee of 8 million won for this wage negotiation is about twice the size of the previous year. SK Telecom recorded 18 trillion 6247 billion won in sales and 1.3493 trillion won in operating profit last year. Sales increased 5% year-on-year, and operating profit increased 21.8%. However, the union protested, arguing that “as a result of forecasting with stocks paid through the shareholder participation program, the incentives are expected to decrease significantly this year from last year.” In addition, the union insisted that the incentive system should be completely reorganized to ensure predictability and objectivity.
In addition, as information technology (IT) companies such as Nexon, Netmarble, and Coupang have recently significantly increased employee salaries, the controversy over performance pay has spread throughout the IT industry. As talented developers are valuable, companies are promising more salaries. Krafton, the production company of’Battle Ground’, has set a salary increase of 20 million won for the developer group and 15 million won for the non-development group, respectively. In addition, they participated in an unusual salary increase regardless of the size of companies such as Com2uS, Gameville, Smilegate, Joy City, and Vespa.
As if reflecting this atmosphere, SK Telecom CEO Park Jeong-ho said, “As SK Telecom has the best talent in the industry, we must pay the best compensation to our employees and strive to secure the best talent.” .
According to this agreement, the labor and management of SK Telecom decided to use alternative indicators such as operating profit from Economic Value Added (EVA) for the criterion for determining performance pay, which was a problem. This is to make it easier to predict the size of individual employees’ performance pay.
An official from SK Telecom said, “In a situation where competition for securing talent in the IT industry is heating up, it reflects the determination that it is necessary to secure the best talent to provide new value to customers, and that compensation is needed accordingly.”
Inner sky reporter [email protected]
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