[Asia Economy Reporter Hwang Yoon-joo] SK Innovation's labor and management, which have created an advanced labor-management culture rarely found anywhere else in Korea and demonstrated groundbreaking coexistence every year, made new history this year’s wage negotiations by reaching a tentative agreement in the shortest time ever and achieving the highest voter turnout and approval rate.
At the annual wage negotiation meeting, labor and management agreed to jointly overcome the crisis caused by the "global petrochemical industry downturn and worsening business environment due to COVID-19."
On the 3rd, SK Innovation’s labor and management held the "2021 Wage Negotiation Signing Ceremony" by connecting SK Building in Seorin-dong, Seoul, and SK Ulsan CLX via video conference. Considering the COVID-19 situation, the signing ceremony was conducted in a non-face-to-face video meeting format, the same as the previous year.
For the 2021 wage negotiations, labor and management representatives met for the first time on February 16 and reached a tentative agreement in a record shortest time of 20 minutes. The agreement set the wage increase rate at 0.5%, linked to the previous year’s Consumer Price Index (CPI), in accordance with the principle agreed upon between labor and management.
This year, despite the wage increase rate being the lowest CPI since 2010 at 0.5%, the negotiations were successfully concluded for the fifth consecutive year by adhering to the established principle of linking to the previous year’s CPI. SK Innovation explained that while the fact that the agreed principle proceeded without any disagreement between labor and management is meaningful, it is even more significant that labor and management confirmed their shared commitment to overcoming the crisis.
In the union members’ approval vote held on the 23rd of last month, 93.5% of all union members participated, and an astonishing approval rate of 90.9% was recorded, passing the agreement. This is the highest voter turnout and approval rate in SK Innovation’s wage negotiation history and a level rarely seen domestically. It is interpreted as showing the high trust and pride SK Innovation group members have in their advanced labor-management culture.
SK Innovation’s labor and management also agreed to actively participate in ESG (Environmental, Social, and Governance) management, which is a key focus. Through this, labor and management will jointly create a "New SK Innovation" that earns trust and recognition from all stakeholders for the company’s survival and sustainable growth.
Kim Joon, CEO of SK Innovation, said, "The continuous adherence to the wage negotiation framework promises is the result of an innovative labor-management relationship based on trust and respect that has become a unique culture of SK Innovation." He added, "The tentative agreement’s record-high approval reflects the members’ commitment to an innovative labor-management culture aimed at building a respected company."
Lee Sung-hoon, Chairman of the Labor Union, said, "Based on this advanced labor-management culture, we will do our best to bring happiness to all members and stakeholders."
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