SK HERCULES AND THE KOREAN TRADE UNION NEGOTIATED A BONUS

ON TUESDAY, SK HERCULES AND HIS KOREAN TRADE UNION REPRESENTATIVE HELD A FIFTH ROUND OF AWARDS NEGOTIATIONS AT THE SK HERCULES FACTORY IN CHIANGZHOU CITY. THERE WERE DIFFERENCES BETWEEN THE TWO SIDES OVER A GENEROUS BONUS PROGRAMME. LAST YEAR, SK HERCULES AGREED TO ALLOCATE 10 PER CENT OF ANNUAL OPERATING PROFITS TO EMPLOYEES. ACCORDING TO REUTERS CALCULATIONS, THIS MEANS AN AVERAGE OF 779 MILLION WON (APPROXIMATELY US$ 547,127) PER EMPLOYEE IN 2026. IN A CIRCULAR TO MEMBERS, THE UNION INDICATED THAT MANAGEMENT PROPOSED TO PAY MORE THAN HALF OF THE BONUSES IN THE FORM OF SHARES AND TO RESTRICT THEIR SALE FOR A CERTAIN PERIOD OF TIME. THE CIRCULAR ALSO INDICATED THAT THE COMPANY WISHED TO ADJUST THE BONUS PAYMENT IN THE EVENT OF A LOSS. TRADE UNIONS, FOR THEIR PART, INDICATED THAT THEY WOULD NEVER ACCEPT ANY ARRANGEMENT THAT WOULD PLACE THEIR MEMBERS AT RISK OF STOCK PRICE FLUCTUATIONS. KIM XIAN