SK hynix Workers Approve Revised Labor Agreement, Increasing Cash Portion of Performance Incentives

[Financial News] SK hynix’s labor and management finalized a revised wage and collective bargaining agreement through a vote by union members after the initial agreement was rejected. The two sides revised the agreement to increase the cash portion of performance incentives and expand employees’ stock-selection options, winning approval from a majority of union members. The company plans to officially conclude this year’s labor negotiations before the Chuseok holiday.
SK hynix announced on the 16th, "The revised agreement reached through approximately two weeks of intensive negotiations after the initial tentative agreement was rejected was finally approved, receiving 57.08% approval, or 8,731 votes, in the union members’ general vote held over two days from the 15th."
The key elements of the revised agreement are an adjustment to the stock-selection ratio and expanded choice for employees. The payment ratio under the original agreement, which consisted of 40% cash and 60% stock, was changed to 50% cash and 50% stock. For the cash portion, employees can now choose stock instead in 10-percentage-point increments, expanding individual choice to allow performance incentives to be paid entirely in stock.
The company said, "This agreement is highly significant because, despite the initial rejection, labor and management worked together to resolve the issue through voluntary improvements within the existing framework."
The two sides also reaffirmed their commitment to sharing responsibility and overcoming crises by formally stipulating that wages may be deferred in the event of a deficit, rather than addressing performance incentives only when the company is profitable.
During the revote process, the company held approximately 60 information sessions for employees to improve union members’ understanding of the meaning, purpose, and effects of the changes to the system.
SK hynix said, "We thank the labor union and employees for standing with us through this difficult process," adding, "The company and its employees will continue to put their heads together and overcome the challenges we face on our own."
Meanwhile, SK hynix plans to hold a signing ceremony for the final agreement before the Chuseok holiday and officially conclude this year’s wage and collective bargaining process.
[email protected] Im Soo-bin Reporter