SK hynix Moves Toward Tentative Agreement in Wage Talks; Partial Stock Payment for Bonuses Draws Attention

[Financial News] SK hynix management and labor have moved toward a tentative agreement after negotiations to settle this year’s wage and collective bargaining agreement. Attention is now focused on the details, as the two sides are said to have found a compromise on the ratio of profit-sharing bonus (PS) payments in stock and the lock-up period for selling those shares, which had been the biggest point of contention.
According to industry sources on the 19th, SK hynix and its labor union held a bargaining session at the Icheon Campus in Gyeonggi-do the previous day and continued marathon talks until early this morning, eventually moving into the stage of a tentative agreement.
The main issues in the negotiations were a plan to pay part of the PS bonus in stock and a proposal to temporarily adjust wages if the company posted a loss. The company had reportedly proposed requiring more than half of the PS bonus to be paid in stock and restricting sales for several years. The union, however, had maintained that it was difficult to accept a structure that would leave employees exposed to stock price volatility, and it also rejected any wage-adjustment plan that would amount to a pay cut. During the overnight talks, the two sides are said to have narrowed their differences by agreeing to pay part of the bonus in stock while limiting sales for a certain period.
Earlier, SK hynix management and labor agreed to provide bonuses without a cap, using 10% of the previous year’s operating profit as the funding source. Until now, bonuses based on that pool had been paid in cash, but in this year’s talks, the plan to pay part of them in stock emerged as a new key issue.
The union plans to finalize the wording of the tentative agreement this afternoon and then hold an emergency delegates’ meeting soon to disclose the terms. So far, the specific details of the agreement have not been made public.
Once the tentative agreement is reported at the delegates’ meeting, delegates will explain the details to union members at each workplace, gather their views, and then determine whether the agreement is finally approved through a vote by all members.



[email protected] Jung Won-il Reporter