Will the controversy over performance pay end with the decision to improve the PS system and pay employee stock ownership to members?
[오늘경제 = 최주혁 기자]
SK Hynix is changing the recently controversial excess profit distribution (PS) calculation standard from EVA (Economic Value Added) to a plan to link operating profits.
In addition, we plan to issue our stockholders so that employees receive benefits equivalent to 200% of the basic salary.
According to industry sources on the 5th, SK Hynix held a central labor-management council at its headquarters in Icheon on the 4th and announced that the management made a proposal and accepted by the union, and agreed to improve the PS system.
An official of this company said on the day, “We reached an agreement when the union responded positively to the company’s proposal.”
SK Hynix’s PS is an incentive paid when the previous year’s performance exceeded its target profit. Even though last year’s performance was very good, internal complaints were raised when the PS for 2020 was the same as the special contribution paid instead of skipping the PS in the previous year when the performance was not good.
Although SK Hynix’s earnings improved, the PS calculation criteria were inevitable considering EVA, and it was difficult to disclose EVA.
However, when internal fluctuations such as signs of large-scale turnover to Samsung Electronics, etc. reached a serious level, it is interpreted that he surrendered to the labor-management meeting on the same day.
First, the standard indicator for PS calculation will be changed from EVA to operating profit to communicate with employees next week. In the meantime, there have been complaints from members due to the EVA indicator, and we tried to increase the predictability through operating profit in which figures are clearly disclosed.
Also, based on the approval of the board of directors, the company decided to issue employee stocks to give members the right to purchase them. The specific plan was decided later, but it was decided to provide benefits equivalent to approximately 200% of the basic salary. It means to promote the future growth of the company by granting employee stock ownership to members.
Lastly, the management decided to pay 3 million Hi Well Points, which are internal welfare points, to all employees.
In this regard, Seok-hee Lee, CEO and CEO, said, “We sincerely apologize for not having enough communication so far.”
Kim Hae-ju, chairman of SK Hynix’s Icheon Labor Union, said, “It has opened a new path for mutual development between the company and its members.” Cheongju Labor Union Chairman Kang Kook-mo also said, “I will heal my wounds and move toward the future.”
The labor-management meeting was attended by the management and the full-time (production worker) union at the Icheon and Cheongju factories under the Korean Trade Union.
On the other hand, it is unclear whether the controversy over the performance-payment will end as the management argues, as the labor union belonging to the KCTU is not recognized as a formal bargaining organization.
On the other hand, the conflict between SK Hynix, where President Park Jung-ho is the CEO (Vice Chairman), is undergoing a suturing procedure in this way, but at SK Telecom, which is in charge of another representative, the labor-management conflict is intensifying without reaching an agreement.
Right now, the SK Telecom labor union is raising the level of pressure on the management by unfolding a strong’fight’ on this day.
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