Steel Industry 'Rewarding Where There Are Results'
Sharing Success with Employees Amid Record-Breaking Performance
[Asia Economy Reporter Hwang Yoon-joo] The steel industry, which succeeded in turning a profit last year, paid management performance bonuses equivalent to up to 300% of the base salary. This was due to recording the highest performance after overcoming the impact of COVID-19 in just one year.
According to the industry on the 4th, POSCO will additionally pay about 10% of the base salary as a management performance bonus this month. Earlier, POSCO paid 160% of the base salary as a management performance bonus at the end of December last year. POSCO's wages consist of a 400% bonus and an 800% performance bonus. The performance bonus is a fixed amount paid when operating profit occurs, and the total 800% is paid in installments over one year.
Hyundai Steel and Dongkuk Steel also completed the payment of performance bonuses. Hyundai Steel gave all employees an additional 200% of the base salary and 7.7 million KRW as management performance bonuses, and Dongkuk Steel paid a lump sum of 2 million KRW as a 'labor-management harmony encouragement fund' and 300% of the base salary as a performance bonus.
The reason the steel industry held a rare performance bonus celebration is because they achieved a performance miracle. In the third quarter of last year, POSCO, Hyundai Steel, and Dongkuk Steel recorded record-breaking operating profits of 3.12 trillion KRW, 826.2 billion KRW, and 298.5 billion KRW, respectively.
An industry official explained, "The recent social trend has shifted to a policy of 'rewarding performance,'" adding, "Since last year was a boom and the highest performance in history was recorded, the achievements were shared with the employees."
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