SK Hynix settles labor union dispute with new bonus agreement

The union representing SK Hynix’s full-time production workers in Icheon and Cheongju approved a revised wage agreement on Wednesday, according to local media outlet Yonhap. The agreement, which includes higher base cash payments for bonuses, received 57.08% approval in a vote held on Tuesday. The revised deal changes the cash and stock payment ratio for excess profit-sharing bonuses to 50% each, up from an earlier proposal of 40% cash and 60% stock.

The agreement comes three weeks after the union rejected an initial payout deal that also included a 6.3% wage increase. The vote follows increased attention on how SK Hynix will distribute its profits from recent artificial intelligence-driven gains. Workers had demanded a larger share of the profits. Earlier this year, the company approved a substantial 40 trillion won share buyback plan.