SK Hynix has vowed to provide employees with stock ownership plan and improvement in its profit sharing plan on Thursday amid backlash by employees from low bonuses.
The company has reached an agreement with labor union. SK Hynix offered three proposition and the union agreed.
The three were: to use operating income as the standard of calculation for bonuses, a new employee stock ownership plan which will require the board’s approval and payments of the company’s internal points.
SK Hynix has previous used economic value addition as its standard for bonus calculations.
The new employee stock ownership plan will give benefits to employees worth around 200% of their base monthly payment.
All employees will get 3 million Hywel points. A Hywel point has the same value as a Korean won and can be used to buy products and services from websites that have partnership with SK Hynix.
Precise details of the settlement will be ironed out in a meeting next week, SK Hynix said.
Company CEO Lee Seok-hee apologized for not sufficiently communicating with employees up to now. He said the company will focus on fairness and transparency going forward.
Kim Hae-joo, chair of SK Hynix’s Icheon labor union, said a new road has opened for mutual development between the company and employees. Kang Kook-mo, chair of the company’s Cheongju union, also praised the settlement.