"Wasn't it 700 million won?"... SK hynix union shocked by management's bonus proposal, calling it "unreasonably stingy"

[Financial News] SK hynix management and labor have brought the bonus system, which they agreed last year to keep in place for the next 10 years, back to the bargaining table after just one year.

According to Yonhap News Agency on the 22nd, the union representing SK hynix production workers held intensive working-level talks with management the previous day at the Jincheon County Chamber of Commerce and Industry building in North Chungcheong Province. The office workers' union also continued separate talks that same day.
The intensive negotiations were arranged after the two sides failed to narrow their differences over key issues, including bonuses, during the third round of main talks on the 14th.
During the main negotiations, management is said to have presented a new proposal on bonuses. The details were not disclosed, but reports said the plan may include mandatory stock-based payments for part of the bonus.
In response, the production workers' union pushed back during the third round of main talks, saying, "The company's bonus proposal cannot be accepted because it undermines the spirit and basic direction of the agreement that was painfully reached last year." The office workers' union also made its position clear, saying, "If the bonus criteria are changed or if there is any loss, we absolutely cannot accept it."

There were also claims inside the union that management's first proposal was "shockingly unreasonable." The union is holding firm to its position that it cannot accept a plan that pays part of the bonus in stock, and it is reportedly arguing that the actual proposal from management is even stingier than what has been made public.
Last year, SK hynix management and labor agreed to remove the cap on Profit Sharing (PS), a bonus funded by 10% of operating profit, and to keep that framework in place for the next 10 years. Under the system, 80% of the PS payout is paid in cash that year, while the remaining 20%, or 10% each year, is paid in installments over two years.
If this system remains unchanged, SK hynix's operating profit this year is projected to reach 27 trillion won, which would sharply increase the PS pool as well.
If 10% of operating profit is simply divided by the total number of employees, about 35,000, the average bonus per person is estimated at roughly 700 million to 800 million won before tax. The actual amount, however, varies depending on rank and individual criteria.
As the bonus amount is expected to rise sharply, concerns among employees are also growing after the possibility of a change in the payment method was raised.

Industry watchers say management began reviewing a new bonus payment plan amid a mix of factors, including recent public criticism over SK hynix's bonuses, concerns about cash outflows amid strong earnings, and a plan to link employee compensation to long-term corporate value. In addition, President Lee Jae-myung said at a State Council of South Korea meeting on the 21st, "Is the issue of distributing a certain percentage of operating profit really a subject of labor dispute? I think it is more likely not." As a result, the labor dispute over bonuses appears to be entering a new phase.
Along with bonuses, housing support is also emerging as a key bargaining issue in the welfare area.
While Samsung Electronics agreed in this year's wage negotiations to establish a new in-house housing stability loan program of up to 500 million won, the SK hynix union is also reportedly discussing a housing loan support plan using the company's employee welfare fund.
The union explained that, since public attention has increased after the bonus cap was removed, it has focused its demands on welfare rather than seeking a large wage increase.
Meanwhile, SK hynix, which operates under a multiple-union system, is separately conducting wage and collective bargaining negotiations with the technical and office workers' union affiliated with the KCTU and the production workers' union affiliated with the FKTU. The two sides plan to hold a fourth round of main talks soon and continue negotiations.
[email protected] Reporter Kim Su-yeon Reporter