According to the mobile communication industry on the 8th, SK Telecom has tentatively agreed to pay 8 million won to all employees in the name of the wage negotiation settlement fee in the labor-management wage negotiation TF. Payment will be confirmed through a general vote of the members on the 11th.
In the industry, it is believed that the decision was made after the recent controversy over performance pay and the fierce competition for recruiting talent in the IT industry.
Previously, incentives were excluded from the labor-management negotiation table because they were not subject to wage and collective bargaining, but this time, wage negotiations and incentive pay systems were discussed together.
Earlier, SK Telecom’s union officially raised a problem saying that last year’s incentives had decreased by 20% from the previous year, even though sales and operating profits increased by 5.0% and 21.8%, respectively, compared to the previous year, including 18.600 billion won in sales and 1.3 trillion won in operating profit.
SK Telecom’s labor and management came up with a plan to improve the system so that individual employees can predict the performance-based pay standard that has been a problem.
The existing performance-based indicators will be paid by reflecting the core performance indicators (KPI) and PS in the current EVA (Economic Value Added).
SK Telecom explained that it is meaningful that the labor and management came up with a predictable agreement through transparent negotiations.
An official from SK Telecom said, “For the best service, we have reflected our will to secure the highest level of talent and have a reward system appropriate for this,” and said, “We drew results based on communication between labor and management.”