SK Hynix's generously rewarded incentive scheme stirring discussions, eliciting enthusiasm from some, envy from others

In a significant development, the labor unions of major corporations in South Korea, including the Federation of Korean Industries (FKI) and the Korea Employers Federation (KEF), have called for a revamp of incentive systems on Tuesday. This call follows negotiations between SK hynix and its labor unions.

The labor union of five affiliated companies of Samsung Group has also demanded an overhaul of the current economic value added system, citing SK hynix's recent negotiation as an example. However, the labor union of the five Samsung affiliates has remained largely silent on the issue, not commenting on any surge in posts on Blind or any reactions from employees about the revamp call.

The union did not mention any posts expressing excitement, satisfaction, or questions about the revamp on their forum on Blind, an anonymous online platform for certified employees. Similarly, they did not disclose any specific changes they propose for the incentive system or discuss the abolition of any caps on bonuses or profit-sharing plans in their statement.

In contrast, the labor union at SK hynix has announced a new labor agreement that includes a profit-sharing plan allocating up to 10 percent of the company's operating profit. The agreement also includes a bonus expected to average up to 100 million won ($71,777) per employee. This announcement has caused a surge in posts on Blind, with many expressing excitement and satisfaction about the new agreement.

One post on SK hynix's forum asks about the profit-sharing incentive payment in the new labor agreement, while another post says the individual learned about the new labor agreement from friends expressing envy. The new labor agreement at SK hynix also abolishes the previous cap that limited the bonus to 1,000 percent of the workers' basic wage.

The Samsung union, however, stated that the current incentive system of the company is unclear regarding how much employees should receive. Despite this, they did not disclose any information about the profit-sharing incentive payment in their statement.

The labor unions did not specify which other corporations they are referring to in their call for a revamp. This development marks a significant shift in the labour landscape of South Korea, with unions pushing for more transparency and fairness in incentive systems. The Samsung union's silence on the matter adds an interesting twist to this evolving narrative.

SK Hynix's generously rewarded incentive scheme stirring discussions, eliciting enthusiasm from some, envy from others