"We Won't Accept Rollercoaster Stocks"... SK Hynix Union Rejects Deal, Demands Cash Bonuses

SK Hynix's labor union has ultimately voted down the tentative agreement on this year's wage and collective bargaining negotiations.

The plan to pay 60% of performance bonuses in company shares—the most contentious issue between labor and management—failed to cross the threshold for members' approval, bringing both sides back to the negotiating table.

According to the union, a ratification vote held from yesterday through 9:00 a.m. today resulted in the tentative agreement being voted down with a 50.08% opposition rate.

The approval rate stood at 49.92%, with "nay" votes outpacing "yea" votes by a mere 25 ballots.

Voter turnout among all union members reached 93.81%.

The vote drew high interest from the start, with turnout exceeding 40% just about two hours after voting began.

The core of this tentative agreement was the method of bonus payment.

It proposed paying 40% of the Profit-Sharing (PS) pool in cash and 60% in company shares.

Under the plan, two-thirds of the stock portion would be paid in the current year, while the remaining one-third would be deferred and paid in halves over two years.

The shares deferred over two years could be sold immediately upon receipt.

Last year, SK Hynix abolished the cap on performance bonuses and decided to utilize 10% of operating profit as the bonus funding source.

However, members strongly objected to the excessively high proportion of stock-based compensation throughout the negotiation process.

The main reason behind the backlash is that the actual value of compensation for company shares can fluctuate depending on stock price movements.

With the tentative agreement rejected in the union vote, labor and management are expected to resume renegotiations.

Concerns are rising that conflicts over the bonus payment method between labor and management, as well as among members, could be prolonged.

Reported by Jung Da-eun | Video by Chang Yu-jin | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.