SK hynix Approves Revised Wage and Collective Bargaining Agreement, Increasing Cash Portion of Performance Incentives

[Financial News] SK hynix and its labor union have finalized a revised wage and collective bargaining agreement that was rejected once before through a vote of union members. The two sides supplemented the agreement by increasing the cash portion of performance incentives and expanding the range of stock options, winning majority support from union members. They plan to officially conclude this year’s wage and collective bargaining process before the Chuseok holiday.
SK hynix announced on the 16th, "The revised agreement reached by labor and management through about two weeks of intensive negotiations after the rejection of the first tentative agreement was finally approved with 57.08% support, or 8,731 votes, in the union-wide 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 employee choice. 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 of cash in 10-percentage-point increments, expanding individual choice so that performance incentives can 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."
In addition, the two sides formalized wage deferral in the event of losses, reaffirming their commitment to share responsibility and work together to overcome difficulties not only when performance incentives are paid during profitable periods but also when the company posts losses.
During the revote process, the company held about 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 future challenges on their 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 Su-bin Reporter