SK hynix Reaches 2026 Wage Deal After Revised Agreement Wins Union Vote

SK hynix has reached a 2026 wage and collective bargaining agreement after the union approved a revised proposal in a vote held from September 15 to 16. The revised agreement received 8,731 votes, or 57.08%, in favor. Prior to this, the initial tentative deal was rejected on August 25, leading to around two weeks of intensive negotiations.

The revised deal, reached on September 9, alters the distribution of performance incentives. Initially, 40% of incentives were to be paid in cash and 60% in company shares. However, the revised agreement equalizes the split to 50-50. Moreover, employees now have the flexibility to adjust this mix, converting the cash portion into shares in increments of 10 percentage points.

This shift moves away from a single predetermined allocation and gives employees more control over their incentives. The agreement also introduces a provision allowing wages to be deferred during the company's losses, balancing performance-based rewards with a mechanism to share burdens during downturns. The negotiations were extensive, with around 60 briefing sessions held to explain the revised system to employees.

SK hynix's earnings growth, driven by AI memory business, has been a key factor in this year's negotiations. Despite initial resistance, the two sides successfully revised the incentive payment structure before presenting it to another vote. SK hynix expressed gratitude to the union and employees for navigating through the difficult process, promising continued collaboration to address ongoing challenges.

The final agreement is set to be signed before the Chuseok holiday, marking the conclusion of this year's wage and collective bargaining process.