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Production workers narrowly rejected a tentative wage agreement that proposed paying 60% of performance bonuses in company stock amidst concerns over share-price volatility.
SK hynix will return to the negotiating table with its production-worker unions after members narrowly rejected a tentative wage agreement that included a significant share-based bonus component.
According to local media reports, 7,535 production-worker union members, or 50.08%, voted against the proposal, while 7,510 members or 49.92% voted in favour, a margin of just 25 votes. More than 93% of eligible members participated in the ballot.
As reported, the proposed agreement was reached earlier between management and the unions following two months of negotiations. It included a 6.3% wage increase and a new profit-sharing structure under which 40% of performance bonuses would be paid in cash and 60% in company shares. For 2026 performance bonuses to be paid early next year, the company will allow employees to receive up to 80% in cash.
While the wage increase exceeded the 6.2% increase agreed at Samsung Electronics, concerns over the stock-based component proved a major obstacle, with some employees reportedly expressing reservations about the potential volatility of share prices and the possibility of a greater proportion of bonuses being paid in stock in the future.
The vote result means negotiations between management and the production-worker unions will resume. By contrast, SK hynix's technical and office-worker union approved the same agreement with support reportedly in the 60% range.
If the agreement with the production-worker unions is revised through renewed negotiations, the updated terms could also be applied retroactively to technical and office workers.
Image / SK hynix's website
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