The image shows the company flag of Samsung Electronics Co. hoisted in front of its headquarters in Seoul. (Image courtesy of Yonhap)
SEOUL, Sept. 2 (Korea Bizwire) — Unionized workers of Samsung Electronics Co. sent a letter to Chairman Lee Jae-yong on Tuesday, demanding the company improve the transparency of its bonus system.
In a document sent to the de facto head of Samsung Group, workers demanded the adoption of a more transparent bonus evaluation system and the abolition of the current framework based on economic value added (EVA).
“While SK hynix recently decided to allocate 10 percent of its annual operating profit to its bonus program, Samsung Electronics is still using the EVA method, which lacks transparency,” the union said.
A day earlier, SK hynix Inc. and its labor union reached a tentative wage deal under which the company will allocate 10 percent of its annual operating profit to the profit-sharing bonus program, while scrapping the cap that had been limited to 1,000 percent of employees’ basic pay.
“Under the current system, bonuses can be zero even when the company posts a large operating profit, and there also is a ceiling,” the union said.
“Although it is too late to restore workers’ trust, the company should at least show a willingness to change,” the union added.
(Yonhap)
