"60% of Bonus in Stock" SK hynix Provisional Wage Agreement Rejected... 25 More Votes Against

Turnout Rate Reaches 93.8%, Agreement Rejected by 25 Votes

Tentative Deal Finalized After Six Rounds of Negotiations

Technical and Office Workers' Union Vote in Afternoon; Renegotiations Expected

A tentative wage and collective bargaining agreement (CBA) between SK hynix labor and management, centered on paying 60% of performance bonuses in company stock, has been rejected by a vote of production worker union members, with 50.08% voting against the proposal.

According to the union representing production workers at SK hynix, the electronic vote on the tentative agreement, which closed at 9:00 a.m. on August 25, resulted in 49.92% in favor (7,510 votes) and 50.08% against (7,535 votes), leading to the agreement's defeat. The voter turnout stood at 93.81%, with 15,045 out of the total 16,083 union members participating. Although a majority of eligible members cast their votes, the proposal was voted down because a majority of those who voted were against it. The difference between votes in favor and against was just 25. Voting took place from 6:00 a.m. on August 24 until 9:00 a.m. on the day of the voting deadline.

The technical and office workers' union is holding its own vote on the tentative agreement until later this afternoon. If the agreement is ultimately rejected, labor and management will enter into renewed negotiations. It is highly likely that details such as the method of performance bonus payments, which was the main controversial issue, will be revisited. SK hynix unions also entered into renegotiations with management in both 2023 and 2024 after tentative CBAs failed to gain approval.

Previously, after the sixth round of negotiations on August 20, SK hynix labor and management prepared a tentative agreement including a 6.3% wage increase, payment of 40% of the performance bonus (PS) in cash, and the remaining 60% in company stock. Of the shares awarded, 40% could be sold starting the day after receipt, while 20% would be paid out in installments of 10% each over two years. However, for the 2026 PS to be paid out early next year, recipients can choose to take the 40% stocks portion in cash instead.

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