SK Hynix, the world’s second-largest semiconductor maker, concluded its 2015 wage agreement with its employees. Along with the wage agreement, labor and management also decided to run a ‘wage-sharing program’ to improve working conditions and occupational safety and health of the company’s subcontract workers, by contributing 20% of the wage increase in 2015.
Some companies have had profit-sharing programs with subcontractors before, but SK Hynix is the first to use a certain portion of its wage increase to directly support such workers.
According to this ‘wage-sharing program,’ SK Hynix workers shall provide 10% of their wage increase, and the company shall match it. These funds will be used to improve wages, welfare, and occupational safety and health conditions for 4,000 subcontract workers in Icheon and Cheongju.
Labor and management also agreed to run a committee to improve the wage system from the 2nd half of 2015, in order to set guidelines for extension of the retirement age, establishment of a wage peak system, and clarifying ordinary wages, all of which were introduced last year.