SK Innovation Sets an Example of Win-Win Growth by Peacefully Concluding Wage Talks

SK Innovation's labor and management have wrapped up their collective wage negotiations for this year without a conflict. The two sides signed a conflict-free wage agreement for four years running.

SK Innovation held a signing ceremony online by connecting the SK Seorin Building in Seoul and SK Ulsan Complex in Ulsan on March 3. To prevent the spread of COVID-19, the ceremony was held through a video conference system for the first time.

The labor and management first met on Feb. 17 and reached a tentative agreement in just 30 minutes. The wage increase rate was set at 0.4 percent, which was the growth rate of the consumer price index in 2019. The labor union kept a promise with the management to link the wage increase rate to the consumer price index of the previous year, even though the increase rate was the lowest level since 2010. The union kept the promise despite a leadership change this year.

The agreement was passed as 84.2 percent of the participating unionists voted in favor of it on Feb. 26. “We smoothly concluded the negotiations in accordance with principles agreed on by the labor and management with constructive suggestions and consideration by avoiding exhaustive practices in the past,” SK Innovation said. “Now we have established this peaceful system very naturally.”