After Wage Deal Rejection, SK hynix Launches Company-wide Communication: "Fair Rewards Will Be Ensured"

Facing Backlash Over Profit Sharing in Company Shares
Jin Bokun: "We Will Ensure No Disadvantages for Our Employees"
CEO Kwak Nojeong Expresses Willingness to Renegotiate Details

SK hynix recently held an internal communication event and reaffirmed its commitment to ensuring fair rewards for its employees, following the rejection of the recent provisional wage and collective bargaining agreement. As labor and management have returned to the negotiating table over issues such as the Profit Sharing (PS) payment structure after the provisional agreement was voted down, industry watchers are closely following whether a consensus can be reached through renewed negotiations, with the management expressing a strong will to resolve the situation.

According to industry sources on September 3, SK hynix held the 'Together THE Communication Event' the previous day at its Bundang campus in Seongnam, Gyeonggi Province, which was broadcast live to all its domestic business sites.

During the event, Jin Bokun, Head of Corporate Culture at SK hynix, explained the rationale behind the changes to the PS payment method, stating, "The company will protect our members and ensure there are no disadvantages so that the performance and rewards of our employees are rightfully recognized in society." Jin added, "We needed to put thought into ensuring the sustainability of the incentive system," and, "Considering that the interests of our largest stakeholders—shareholders and members—are aligned, we contemplated granting stock as part of the reward."

Previously, SK hynix’s labor and management proposed a provisional agreement that included a 6.3% wage increase, with 40% of PS paid in cash and the remaining 60% in the company’s own shares, and put it to a vote. However, it was rejected by a majority, with the margin of difference being only 25 votes, highlighting the division. The decisive factor behind the rejection appears to be employee backlash to the inclusion of company shares in the PS payout, a change from last year when the full amount was paid in cash.

CEO Kwak Nojeong, who attended the event, said, "Last year, we achieved a broad agreement. This time, I will work with our members to refine the details," indicating that more specific issues will be addressed in the renegotiation process. He also said, "We are building a better future together and making our company more sustainable," adding, "I will work to ensure that both the company and its members can grow with pride."

Kwak Nojung, President and CEO of SK hynix, was interviewed by the press on the 27th of last month (local time) at Purdue University in Indiana, USA. Photo by Yonhap News Agency

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