SK hynix Approves Revised Wage Agreement... Employees Can Choose 50-100% of Performance Bonus in Stock (Comprehensive)

Agreement Reached Three Weeks After Rejection of Initial Proposal
50% Cash, 50% Stock
Option to Take 100% of Bonus in Stock
Wage Deferral in Case of Losses Stipulated

SK hynix and its labor union concluded this year's wage and collective bargaining negotiations by reaching final approval on a revised agreement, approximately three weeks after the initial provisional deal was rejected.

On September 16, SK hynix announced that union members had approved the revised proposal with a 57.08% approval rate in the vote held over two days starting September 15. Out of the total 16,039 eligible voters, 15,297 participated, marking a high turnout of 95.37%. The final count recorded 8,731 votes in favor (57.08%) and 6,566 votes against (42.92%).

The core points of this revised tentative agreement are the adjustment of the cash and stock payment ratio for Performance Sharing (PS) bonuses and the expansion of employee choice. The cash payment portion was raised from the 40% originally proposed by management to 50%, while the stock payment ratio was lowered from 60% to 50%. In addition, the options for selecting stock payments have been subdivided in 10% increments, enabling employees to choose to receive up to 100% of their bonus in stock if they wish.

Previously, the first provisional agreement, reached on August 25, passed only the technical/professional union vote, while being rejected in the general staff union vote, resulting in a stalled negotiation. Many union members strongly opposed the company's plan to pay a significant portion of bonuses in stock with restrictions on selling. Subsequently, after about two weeks of intensive negotiations, labor and management produced a revised proposal that reflected union members' opinions on September 9.

During the re-vote process, the company held around 60 employee briefings to explain the purpose and expected effects of the changes, increasing union members’ understanding. This effort is seen as having played a decisive role in securing approval.

The agreement also includes a clause stipulating that, in the event of a deficit, wage payments will be postponed, in addition to bonus distribution during periods of profit. This is intended to signify the shared responsibility of labor and management in overcoming crises together.

SK hynix plans to hold a signing ceremony for the final agreement before the Chuseok holiday, officially concluding this year’s collective bargaining procedures.

SK hynix stated, "We thank the labor union and our members for navigating this challenging process together," adding, "Going forward, the company and employees will continue to tackle any arising issues together."

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

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