Samsung, Hyundai see increasing labor risk after SK lifts incentive cap

Samsung Electronics and Hyundai Motor are facing a major labor challenge, as their unionized workers are expected to urge management to lift incentive caps following SK hynix’s recent decision to abolish the upper limit on the company’s profit-sharing incentive system in an agreement with its labor union Monday. Earlier, the chipmaker offered a one-time incentive of up to 1,000 percent of employee base salary each year, but the new agreement removes the ceiling. SK hynix will also provide 10 percent of its total annual operating profit as incentives to employees and executives. This will enable each employee from the company to receive some 100 million won ($72,000) on average this year as an incentive, according to the firm’s annual earnings projection. The company reported an operating profit of 9.21 trillion won in the second quarter based on solid sales of its high-bandwidth memory (HBM) chips, up 68 percent from the previous year. In response, labor unions from other major Korean conglomerates are stepping up pressure on management, urging them to follow in the footsteps of SWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times