SK hynix Labor and Management Face Final Crucial Stage in Wage Negotiations... Representative Talks Today

Opposition to 'Company Stock Bonus' Proposal Remains
Unified Labor Union Emerges as a New Factor

On August 18, representatives from both labor and management at SK hynix are holding a negotiation session, aiming to reach a final agreement on the 2026 wage and collective bargaining negotiations.

The headquarters of SK hynix in Icheon, Gyeonggi Province. Photo by Yonhap News

According to industry sources, labor and management at SK hynix continued their negotiations following the sixth round of relay talks on August 12, holding adjustment sessions daily from August 15 to 17 during the Liberation Day holiday period. On the previous day, the labor union informed its members that, "Although some legal and detailed practical reviews of certain issues remain, significant consensus has been reached on the main agenda items," and added, "We believe we have crossed more than 90% of the negotiating hurdle."

On this day, both sides are convening at the Icheon campus to attempt to draft a final agreement during the representative talks. One of the key points of contention, the 'wage adjustment in case of a deficit' clause, has seen narrowing differences as related proposals have been revised during the negotiations.

However, disagreements remain over the method of performance-based bonus payments. Last year, SK hynix labor and management agreed to abolish the cap on the profit-sharing (PS) bonus—funded with 10% of operating profit—and to maintain this system for 10 years. Under this new agreement, 80% of the PS is paid in cash within the year, while 20% is deferred for two years.

Nonetheless, in this year's negotiations, management has reportedly proposed a new plan to pay a substantial portion of the bonus in company stock, with restrictions on selling the shares for a certain period. Employees are reacting strongly against this, citing concerns over compensation uncertainty due to share price fluctuations, as well as opposition to overturning last year's agreement after only one year.

Additionally, the recent launch of a unified labor union representing both production (field) staff and technical/office staff on August 13—pushing the union’s membership close to 3,000—is emerging as a new variable in the wage and collective bargaining talks.

This content was produced with the assistance of AI translation services.