"We will ensure members are not disadvantaged"—SK hynix moves to contain fallout after wage and collective bargaining agreement rejected

[Financial News] Regarding performance bonus payments, SK hynix said, "The company will protect our members and ensure they are not disadvantaged so that their performance and compensation can be rightfully recognized by society."
With SK hynix’s tentative wage and collective bargaining agreement recently rejected by labor and management, interest is growing in the size and payment method of the company’s performance bonuses. The emphasis on fair compensation for employees appears to reflect the company’s intention to minimize controversy and contain the fallout following the rejection.
According to industry sources on the 3rd, Jin Bo-geon, head of the corporate culture division at SK hynix, made the remarks regarding changes to the performance bonus payment method at the “Together THE Communication Event” held the previous day at SK hynix’s Bundang Campus in Gyeonggi Province.
Labor and management had earlier reached a tentative agreement last month that included a 6.3% wage increase, with 40% of the performance bonus, known as Profit Sharing (PS), to be paid in cash and the remaining 60% in treasury shares. However, the agreement was rejected by a margin of just 25 votes.
Regarding the change, after just one year, from last year’s cash-only agreement to a method that includes treasury shares, Jin said, "We considered stock-based payments for performance bonuses because the interests of the two largest stakeholders—shareholders and our members—are closely connected."
Noh-Jung Kwak, president and CEO of SK hynix, who attended the event, said, "We reached an agreement on the broad framework last year, and we will work through the details together with our members." He added, "We will strive to create a better future together, so that the company and its members can grow with pride throughout the process."
As Kwak indicated that he would discuss the details with the union, attention is focused on whether labor and management will be able to find common ground on the performance bonus payment method and other issues in negotiations following the rejection of the tentative agreement.

[email protected] Kim Hak-jae Reporter