SK hynix, union reach tentative deal on 6.3% pay raise, stock-based bonuses
A tentative labor deal would raise pay 6.3 percent and shift most profit-sharing bonuses into company shares.
SK hynix's headquarters in Icheon, Gyeonggi, on July 29
YONHAP
SK hynix and its labor union have reportedly reached a tentative agreement on this year's wage and collective bargaining deal that includes a 6.3 percent pay raise and a revised bonus scheme under which 40 percent of profit-sharing bonuses will be paid in cash and the remaining 60 percent in company shares.
The union held an emergency delegates' meeting the same afternoon to explain the agreement to its members ahead of a final ratification vote.
Under last year's agreement, SK hynix and its union agreed to remove the cap on the company's profit-sharing bonus (PS), which is funded with 10 percent of operating profit. That deal set the payment structure at 80 percent cash in the year the bonus is awarded and 20 percent deferred over two years, with the system locked in for 10 years.
The latest negotiations, however, have resulted in some changes to the existing bonus payment structure.
Under the revised system, 40 percent of the PS will be paid in cash in the year it is awarded, while the remaining 60 percent will be paid in SK hynix shares. Of the total bonus, shares equivalent to 40 percent will be available for sale in the same year, while shares equivalent to the remaining 20 percent will be deferred.
With SK hynix's operating profit expected to reach 250 trillion won ($179 billion) this year, the bonus pool could amount to 25 trillion won. Based on that figure, employees could receive an average bonus of about 700 million won before taxes per person, with roughly 280 million won paid in cash and the remaining 420 million won in company shares — though actual payouts will vary by position and individual performance evaluation.
The tentative agreement also reportedly includes a 6.3 percent wage increase and an increase in employee welfare points, though the exact increase in welfare points was not disclosed.
The union is expected to hold a delegates' vote soon to approve the final agreement.
BY CHO MUN-GYU [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
