"We Won't Take Roller-Coaster Stocks"... SK Hynix Union Demands Cash for Performance Bonuses

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

As the plan to pay 60 percent of performance bonuses in company shares—the biggest point of contention between labor and management—failed to cross the threshold of union members' approval, the two sides are headed back to the negotiating table.

Following a membership vote held from yesterday through 9:00 a.m. today, the SK Hynix union finalized the rejection of this year's tentative wage agreement with a 50.08 percent opposition rate.

The approval rate stood at 49.92 percent, with "no" votes exceeding "yes" votes by a mere 25 ballots.

The overall voter turnout among union members reached 93.81 percent.

The vote drew high interest from members from the start, with turnout surpassing 40 percent just about two hours after voting opened.

The core of this tentative agreement was the method of distributing performance bonuses.

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

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

The company shares deferred over two years could each be sold immediately at the time of distribution.

Last year, SK Hynix abolished the cap on performance bonus payments and decided to use 10 percent of its operating profit as a source for performance incentives.

However, even during the negotiation process, opposition persisted among union members arguing that the proportion of stock payments was excessively high.

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 voted down by the union members, labor and management are expected to resume renegotiations.

Concerns are rising that conflicts over the performance bonus payout method between labor and management, as well as internally among union 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.