All Members Implement 5th Year After 2017 Wage and Collective Bargaining Agreement Decision
[Asia Economy Reporter Hwang Yoon-joo] The '1% Basic Salary Happiness Sharing Fund,' a product of SK Innovation's advanced labor-management culture, is expected to exceed 3 billion KRW this year, marking its fifth year since establishment. This is the highest fundraising amount ever amid the worst management crisis.
SK Innovation announced on the 9th that the pure fundraising amount from members from 2017 to this year totals 11.6 billion KRW, including 3 billion KRW this year. The '1% Happiness Sharing Fund,' initiated through labor-management agreement in 2017, has surpassed 3 billion KRW for the first time in its fifth year of implementation. Including the company's matching grant, the cumulative 1% Happiness Sharing Fund has reached approximately 22.4 billion KRW.
This year, the 1% Happiness Sharing Fund is expected to raise more than 6 billion KRW, combining about 3 billion KRW voluntarily contributed by members as 1% of their basic salary and an additional 3 billion KRW donated by the company as a matching grant.
The '1% Happiness Sharing Fund' is a fundraising method where members voluntarily donate 1% of their basic salary each month, and the company donates an equal amount. This system was agreed upon by SK Innovation's labor and management during the collective bargaining held in September 2017 and has been implemented since October of the same year.
Up to this year, SK Innovation has delivered a total of 10.8 billion KRW in cooperative company win-win funds raised through company matching grants to approximately 22,300 members of SK Innovation-affiliated partner companies. In February this year, at the cooperative company win-win fund delivery ceremony held at SK Innovation Ulsan Complex, a total of 3.5 billion KRW was delivered to 73 SK Innovation-affiliated partner companies, including 2.7 billion KRW from the 1% Happiness Sharing Fund and contributions from the government and partner companies' joint labor welfare fund. SK Incheon Petrochem plans to separately deliver win-win funds to partner companies around July to August this year.
Last year, SK Innovation utilized about 3 billion KRW out of 5.76 billion KRW raised through the '1% Happiness Sharing Fund' (excluding 2019 carryover donations) to support a total of 19 social contribution programs, including emergency COVID-19 prevention support, assistance for vulnerable groups, untact volunteer activities, and support for the independence of people with developmental disabilities.
Additionally, since last year, SK Innovation Ulsan CLX has been implementing a new social contribution program funded by the '1% Happiness Sharing Fund' to support single-parent families in the Ulsan area who are experiencing greater psychological and economic difficulties due to COVID-19.
Lee Sung-hoon, Chairman of the SK Innovation Labor Union, said, "The '1% Happiness Sharing Fund,' now in its fifth year, symbolizes SK Innovation's corporate culture that pursues coexistence with society and partner companies," adding, "We will continue to work together with all members to ensure that SK Innovation's culture of coexistence can be sustained and developed."
Lee Kang-moo, Head of Management Support at SK Energy, said, "Despite the adverse conditions caused by COVID-19 last year, members sincerely participated in the '1% Happiness Sharing Fund,' enabling SK Innovation to carry out its promised social value creation activities without disruption," and added, "Going forward, SK Innovation will strengthen ESG management and take the lead in creating social value in various fields such as building social safety nets and improving the global environment."
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