SK Hynix Labor, Management in Final Wage Talks to Attempt Settlement Today

[Economy 365]

SK Hynix labor and management are entering final negotiations today (August 18) to reach a settlement on this year's wage and collective agreement.

Both sides continued marathon negotiations for three days even through the Liberation Day holiday, intensively discussing major issues.

The labor union stated that while some legal and practical reviews remain, they have reached a substantial consensus on major agendas, crossing the critical threshold of negotiations.

The labor and management have been continuing negotiations over wage increases and performance bonus payout methods.

Last year, they agreed to abolish the cap on the Profit-Sharing (PS) scheme, which is funded by 10 percent of operating profit, and maintain this system for 10 years.

The agreed method involves paying 80 percent of the payout in cash during the corresponding year, with the remaining 20 percent distributed over two years.

However, it has been reported that management has proposed paying a significant portion of this year's performance bonuses in company shares with restrictions on selling them for a certain period.

Because receiving performance bonuses in stocks could cause the actual compensation scale to fluctuate depending on the stock price, opposition from employees remains a variable.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.