SK Hynix, incentive pay ‘10% operating profit’ agreement… End of labor-management conflict

SK Hynix’s labor and management, which had a conflict last year over the amount of excess profit distribution (PS), agreed on a plan to pay incentives.

On the 10th, SK Hynix held a central labor-management council at the headquarters in Icheon, SK Hynix, and announced on the 4th that it has decided on the plan for the improvement of the PS calculation standard and the payment of employee stocks equivalent to 200% of the basic wage.

SK Hynix decided to change the PS payment standard from economic added value (EVA) to operating profit.

Accordingly, the labor and management agreed to change the PS standard to operating profit, which is a transparent financial indicator, and to use 10% of operating profit as PS resources. The management revealed PS payment estimates at the beginning of the year and quarterly so that members can predict how much they will receive at the beginning of next year.

In addition, for the payment method of employee stock ownership, the employee chose one of an ophthalmology in which employees receive stocks equivalent to 200% of the basic salary for free, or purchases at a 30% discount.

The management plans to provide loans to relieve the financial burden of members who purchase at a discounted price.

SK hynix is ​​planning to transfer the stock after holding an employee stock ownership briefing session for members next month and with approval from the board of directors in early April.