"You're saying you'll adjust wages if we run a deficit?"... SK Hynix Union 'Rage'

/Photo = Newsis [Financial News] SK Hynix management and labor have brought the performance bonus system, which they had agreed to maintain for the next 10 years last year, back to the negotiation table after a year, but failed to narrow their differences in position even during the fourth round of main negotiations. According to Yonhap News on the 31st, the SK Hynix labor union released the minutes of the fourth round of main negotiations on that day.
According to the minutes, management presented a plan to restructure the wage system, including a proposal to change the method of performance bonus payment and wage adjustments in the event of a deficit. The union stated, "The company is maintaining its proposal through the fourth round of main negotiations to pay a level of stock far exceeding half of the performance bonus and restrict sales for a certain period," adding, "In addition to this, they are sticking to their existing position regarding the possibility of temporarily adjusting wages in the event of a deficit.
" Backlash from the labor side against management's proposals is growing. This is because it undermines the spirit of the labor-management agreement reached last year.
It is reported that management conveyed its position to the union, stating, "There is an urgent need for a plan in which the company, the union, and the members can wisely navigate various social demands together and gain the empathy of stakeholders," and "We request the understanding and determination of the labor union so that this can become a sustainable system. " In this regard, SK Group Chairman Chey Tae-won commented on the performance bonus controversy at a press conference during the Korea Chamber of Commerce and Industry Jeju Forum on the 15th, saying, "I want to give as much happiness as possible to our members, but there is a caveat.
" He added, "We must be happy together with stakeholders; if the happiness of our members infringes upon the interests of stakeholders, we are in a situation where we must address that issue for the sake of sustainable happiness. " Previously, SK Hynix management and labor agreed during last year's negotiations to eliminate the cap on profit sharing (PS), which was funded by 10% of operating profit, and to maintain this for 10 years.
The current method involves paying 80% of the PS (Performance Benefit) amount in cash that year, while the remaining 20% ​​is distributed over two years in installments of 10% annually. However, the performance bonus system has once again emerged as a point of contention during this year's negotiations, as the company proposed a new plan to pay a portion of the bonus in stock.
At the third round of main negotiations held on the 14th, the full-time union strongly objected, stating, "We cannot accept the performance bonus proposal presented by the company, as it undermines the spirit and fundamental direction of the agreement we painstakingly reached last year. " The office workers' union also made its stance clear, stating, "We absolutely cannot accept it if the performance bonus criteria are changed or if it results in financial losses.
" Currently, SK Hynix continues to achieve record-breaking performance, driven by the boom in artificial intelligence (AI) memory.
It recorded operating profits approaching 100 trillion won in the first half of this year alone, and the securities industry forecasts that annual operating profits will reach around 250 trillion won.
Based on these projections and a simple application to the total number of employees (approximately 35,000), the average performance bonus per person is estimated to reach about 700 million won before tax.
However, the memory semiconductor industry is a representative cyclical industry with significant earnings volatility depending on market conditions.
7 trillion won in 2023 when the semiconductor market was in a slump.
As there is no guarantee that such a downturn will not occur again simply because recent performance has been good, a wave of backlash is growing among employees regarding the company's proposal.
Meanwhile, labor and management are scheduled to continue their fifth round of main negotiations at the Cheongju Campus on the 4th of next month.
The union has warned that it will "take necessary action" if management does not present a revised proposal during the fifth round, raising the possibility that negotiations will be prolonged or lead to collective action.
[email protected] Kim Su-yeon Reporter