SK hynix Labor Talks Enter Final Stage Over Stock-Based Bonuses

SK hynix's labor negotiations are nearing their final stage, with talks set to conclude on Aug. 18 at the company's Icheon campus. Following six rounds of bargaining, including a marathon session over the Liberation Day holiday from Aug. 15 to 17, the two sides have made significant progress on key issues. While legal reviews and procedural discussions linger on some points, a representative-level meeting on Aug. 18 is expected to decide if a final agreement can be reached.

The main points of contention are wage increases and the structure of bonus payments. Negotiations initially focused on adjusting wages in case of a deficit, but both parties successfully narrowed their gap after revising the proposal. However, management's proposal to pay a significant portion of bonuses in company shares has become a new point of contention. The shares would be subject to restrictions on selling for a certain period, exposing employees to stock-price volatility.

Last year, labor and management agreed to eliminate the cap on performance-based bonuses, with 80% paid in cash and 20% deferred over two years. The reversal of this agreement just a year later, coupled with the risk of stock-price fluctuations, has been strongly opposed by workers. The launch of a new integrated union representing both production workers and technical/administrative employees on Aug.

13, with membership nearing 3,000, could create an additional hurdle if the final agreement includes the stock-based bonus plan. As labor and management have narrowed their differences on major issues, today's negotiations may yield the final agreement. However, resolving internal concerns over the bonus payment structure remains a critical challenge.