South Korea’s SK Hynix union members reject wage agreement in vote
Workers rejected the deal by 25 votes, sending the bonus-payment formula back to talks after management proposed more share-based compensation.
- On Aug 25, South Korean chipmaker Hynix union members narrowly rejected a tentative wage agreement, with 50.08 percent of the 15,045 participating workers voting against the proposal by a margin of 25 votes.
- Management's proposal to pay 60 percent of performance bonuses in treasury Shares drove the rejection. The tentative deal, reached on Aug 20, included a 6.3 percent wage increase alongside the contested stock-based payout scheme.
- With Hynix expected to post 250 trillion won in operating profit this year, the agreement would have meant roughly 700 million won bonus per employee. About 94 percent of members participated in the vote.
- Labor and management must return to the negotiating table to address the bonus ratio. Some union members demand cash payments, while Hynix may seek compromise by adjusting the share-based portion.
- This negotiation holds significance across the South Korean industry, as Hynix previously set a 10-year system using 10 percent of operating profit for bonuses. Competitor Samsung Electronics also faced labor tensions over stock-based performance pay.
12 Articles
12 Articles
SK hynix unions refuse receiving 60 percent of bonus in treasury shares
Production workers’ unions at SK hynix on Tuesday voted down a tentative agreement reached between their delegates and management, sending the issue of how much of their hefty performance bonuses should be paid in treasury shares back to the negotiating table. According to industry officials, the tentative agreement was rejected after 50.08 percent, or 7,535 members, of the two unions voted against it. The unions each represents production worke…
Global Market: SK Hynix workers reject pay deal amid bonus dispute
SK Hynix workers narrowly rejected a wage agreement by just 25 votes, with 50.08% opposing the proposed 6.3% pay hike and revised bonus structure. Resistance centred on receiving 60% of bonuses in shares amid stock volatility. The decision comes as strong AI-driven HBM demand boosts profits but raises compensation concerns.
With 93.81% of voters casting their ballots, 50.08% opposed and 49.92% in favor, negotiations resumed after five days. The '60% treasury stock' payment method remains the biggest point of contention, raising the possibility of prolonged negotiations. SK Hynix management and labor have tentatively reached a wage and collective bargaining agreement after two months of negotiations.
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