SK hynix union rejects tentative wage deal after two months of negotiations

SK hynix workers have rejected a tentative wage deal reached after two months of negotiations, industry sources said on Tuesday.

In the union, 7,535 members, or 50.08 percent, voted against the tentative agreement in an electronic ballot that closed at 9 a.m. on Tuesday, the sources said. The voter turnout was 93.8 percent, with 15,045 of the union’s 16,083 members participating.

Management and the union are expected to resume negotiations, with further discussions likely to focus on the performance-based incentive payment system, which was a key sticking point.

The union previously rejected tentative agreements in 2023 and 2024, prompting the two sides to return to the negotiating table.

SK hynix and its union reached an understanding last week that calls for a 6.3 percent wage increase and a new payment structure for the company’s performance-based incentive.

Under the proposal, 40 percent of the incentive would be paid in cash and the remaining 60 percent in company shares.

Of the shares, 40 percent would be eligible for sale in the year received, and the remaining 20 percent would be deferred and paid in 10 percent installments over two years.

Yonhap