SK Telecom’s performance pay conflict is showing signs of prolonged periods. Some media articles aimed at the union were lit up, mentioning a billion-dollar salary. SK Telecom’s labor union rebelled, saying, “Don’t put a stigma and frame on members who claim their rights through media play.”
According to industry sources on the 7th, the SK Telecom union released a letter sent by a media reporter to the union chairman through an in-house e-mail on the afternoon of the 6th, raising suspicion that the management was playing media. SK Telecom’s union side said, “The media and management who are trying to turn the arrow only to workers who have worked hard but who have been extorted are more and more angry with us, without mentioning the billions of wages and incentives that the management receives as the same worker.”
The text contained the reporter’s inquiry about how the performance-based struggle would appear, mentioning the national difficulties and billions of salaries caused by Corona 19. The controversy over the billion-year salary of KBS was also mentioned. The e-mail containing the union’s position was delivered to all employees, including SK Telecom’s CEO Park Jung-ho.
SKT CEO Park Jung-ho at a town hall meeting with employees in November last year
Earlier, the controversy over performance pay that started at SK Hynix has spread to SK Telecom. When SK Telecom unveiled its plan to pay incentives by choosing between cash and treasury stocks, the union raised a problem saying that as a result of its own prediction based on the stocks paid through the shareholder participation program, this year’s incentives are expected to decrease significantly from last year. Last year’s management performance showed good performance, but when the incentives were expected to decline, complaints arose. In addition, the question of unclear incentive payment standards was raised.
Since then, CEO Park Jung-ho said, “Let’s make more efforts to improve the company’s growth, development, and corporate value,” and said, “We will continue to expand communication with members,” but the performance-paid conflict is rising. Although SK Telecom explained that it was not related to the controversy over the incentive pay, it also fueled the decision to pay SK Pay 3 million points.
SK Telecom’s union ▲reviewed the scale of incentive payments this year ▲Repeal of economic added value (net income minus taxes and capital expenses from EVA/operating income), which is the current incentive calculation standard, and designing a separate standard ▲requiring a complete reorganization of the incentive payment method Are doing. Some executives and employees claimed that the annual salary negotiations were conducted on the condition of incentives, but were not kept.
SK Telecom’s union said in this in-house email, “Our struggle is not just a fight in anger because of a single reduction in IB (incentive pay) this year, but we are angry at the overall problem that has been paying arbitrary incentives without standards. That’s it.” “It is a struggle that began with a long-term fight. The trade union started with the unwavering support of its members. I will not fight and I will not fight.”
In response, SK Telecom said, “The union is an important partner from the standpoint of the company, and we will discuss with the union on incentive issues through communication, and seek rational ways together.” Through dialogue, they expressed their position to resolve this conflict.
Meanwhile, SK Telecom recorded 18,624.7 billion won in sales and 1.349.3 billion won in operating profit last year. This is an increase of 5% and 21.8%, respectively, compared to the previous year.