SK Hynix Workers Push Unified Union
With the push to establish a unified labor union involving one out of 10 SK Hynix employees, a seismic shift in labor-management relations is expected. The intent is to maximize bargaining power with a single voice, moving beyond the existing multiple labor union system divided into production worke
SK Hynix intends to establish a unified labor union among its workforce, aiming to consolidate bargaining power by uniting production and technical employees. The preparatory group for the union, which opened on October 5, has seen over 3,500 members in just three days, or 10% of the company’s 35,000 employees. The interim chairperson of the union announced the establishment report on October 8, predicting an official launch as early as next week.
The main driver for this move is a dispute over the payment method of the Profit Sharing (PS) program, which SK Hynix agreed to use 10% of operating profit for in last year's negotiations. Critics argue that the proposed plan to pay part of the performance bonus in stocks is inappropriate, as stock prices fluctuate, and it disrupts the previously agreed-upon system. The unified labor union prioritizes the full implementation of the previously agreed performance bonus payment.
The formation is also fueled by distrust in the existing labor unions, which have not made progress on the performance bonus issue during wage and collective agreement negotiations. With different union representatives for technical and office workers under the Korean Confederation of Trade Unions and production workers under the Federation of Korean Trade Unions, there is a push to integrate job category requirements into one collective voice.
Government policy changes, such as Minister of Trade, Industry and Energy Kim Jeong-gwan's criticism of the performance bonus method linked to operating profit, may also influence the push for a unified union. The Ministry of Employment and Labor is set to announce guidelines on labor-management negotiations, including performance bonuses, which could complicate the negotiation environment.
Even with the launch of the unified union, it must gain representative bargaining status through the procedure for simplifying bargaining windows to participate in actual negotiations. SK Hynix will continue negotiations with existing labor unions, but the new union's ability to influence these talks remains to be seen.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
