SK hynix Labor and Management Adjust Performance Bonus to 50% Cash and 50% Shares; Expand Housing-Loan Eligibility

[Financial News] SK hynix labor and management have prepared a revised tentative agreement to adjust the payment ratio for the performance bonus, known as the profit-sharing bonus (PS), to 50% cash and 50% shares.
Under the revised tentative agreement, the basic payment ratio for the performance bonus will be changed from the previous 40% cash and 60% shares to 50% cash and 50% shares. Employees will also be able to choose a company-stock portion of up to 100%, depending on their preferences.
SK hynix said on the 10th that labor and management had prepared the revised tentative agreement on the 9th and would hold a general vote over two days, from the 15th to the 16th.
The company explained that employees will be able to choose the stock portion in 10-percentage-point increments, from 50% to as much as 100%, further strengthening their right to choose.
The parties also agreed to make early payments of portions of the performance bonus, calculated based on last year’s results, that had been deferred for payment next year and the year after. The measure is intended to minimize confusion that could arise from changing the performance-bonus payment method.
In addition to the existing basic support under the housing-loan program, the criteria for additional support will include single-parent families as well as married households, expanding the scope of housing-support recipients.
Last month, labor and management had reached a tentative agreement providing for a 6.3% wage increase and payment of the PS as 40% cash and 60% shares. However, the agreement was rejected in a vote by union members.
The parties then began renewed negotiations and revised the agreement by increasing the cash-payment ratio and adding employees’ right to choose how the stock portion would be paid.

[email protected] Hak-jae Kim Reporter