SK Hynix Tentative Agreement Voted Down... Hyundai Motor Reaches Deal

[Anchor]

A tentative wage agreement reached by SK Hynix management and labor has been voted down by union members, sending both sides back to the negotiating table. Meanwhile, Hyundai Motor management and labor have reached a tentative agreement following all-night negotiations.

Reporter Park Jaehyeon has the details.

[Reporter]

The tentative collective wage agreement reached by SK Hynix management and union representatives after about two months of negotiations has been voted down by production plant union members.

The vote resulted in 49.92% in favor and 50.08% against, with a razor-thin margin of just 25 votes.

Following the rejection of the tentative agreement, SK Hynix management and labor plan to soon enter into renegotiations.

On August 20, SK Hynix management and labor had agreed on a tentative package that included a 6.3% wage increase, with 40% of performance bonuses paid in cash and the remaining 60% in company stock.

Last year, the two sides had agreed to maintain a cash-only payment method for 10 years, and opposition from union members is reportedly strong regarding the shift to a company stock payment system.

Concerns appear to have run high that the actual value of performance bonuses could fluctuate depending on changes in stock prices.

With the tentative agreement featuring partial payment in company stock being voted down, considerable friction is anticipated during the renegotiation process.

The newly launched SK Hynix unified union on August 13 is also a key variable.

The unified union, which encompasses both administrative and production workers, upholds the principle of paying performance bonuses in cash. It is rapidly expanding in scale, with already over 3,400 employees having joined.

As opposition to paying performance bonuses in company stock grows louder, concerns are rising that negotiations could be prolonged.

Meanwhile, at Hyundai Motor, which experienced its first full eight-hour strike in 10 years, management and labor successfully drew up a tentative agreement after all-night negotiations, which includes a base pay increase and performance bonuses of over 400%.

Hyundai Motor management and labor plan to hold a vote among union members through August 31 before announcing whether the agreement is finally finalized.

(Video Editing: Kim Jong-mi)
※ Please note: This article was translated by AI and may contain errors.