Conglomerates face backlash over differing bonuses at affiliates

• Published date: 02 March 2023
• Publication title: The Korea Times

SK, Hyundai Motor and other large business groups here have sparked protests again this year over their payment of bonuses to employees based on which affiliate they work for and how profitable it is, according to industry officials, Thursday.

Employees of affiliates who had suffered deteriorating profits last year are particularly urging the companies to give everyone the same size regarding performance-based bonuses.

SK Innovation, for example, was embroiled in an internal conflict after deciding not to pay performance-based bonuses to employees of SK On and SK IE Technology (SKIET), both of which suffered operating losses last year. SK Geo Centric's workers were also unable to receive a bonus, as the company's operating profit was halved last year.

Employees of those affiliates complained about the fact that their colleagues at SK Innovation, SK Energy and SK Enmove have been able to receive performance-based bonuses equivalent to up to 1,200 percent of their monthly base salaries. Those companies enjoyed solid earnings last year, thanks to a boom in the refining industry caused by international oil price hikes.

Some employees of SK Innovation affiliates even sent their complaints via Instagram's direct messaging feature to SK Group Chairman Chey Tae-won, according to industry officials.

"It is actually meaningless to divide SK's refining and petrochemical affiliates, but management intentionally separated the affiliates for them to look more eco-friendly," an SK Innovation worker wrote on Blind, an anonymous chat app for verified employees. "When SKIET made profits...