SK Hynix union narrowly rejects performance pay deal, 60% stock payout proposal fails

The union representing full-time employees at SK Hynix narrowly rejected a tentative agreement on performance-based pay, falling just 25 votes short of approval. The vote concluded on July 25th, with only 49.92% of the 16,083 union members casting a 'yes' vote.

The proposed agreement, negotiated between the company and the union, included a 6.3% increase in base wages. Crucially, it stipulated that 60% of performance bonuses would be paid in SK Hynix stock and the remaining 40% in cash. Provisions were made to mitigate potential stock value fluctuations, including allowing immediate sale of 40% of the stock bonus and a staggered payout over two years for the rest. A temporary measure allowed 80% of the bonus to be paid in cash for the current year, excluding deferred payments.

Attention now shifts to the technical and office workers' union, whose vote on the same agreement concludes later the same day. If this union also rejects the proposal, SK Hynix and its labor unions may enter full-scale renegotiations. Should the technical union approve it, the company might proceed with separate discussions for the full-time employees' union or seek further negotiations. This marks the third consecutive year that a tentative agreement has faced rejection, following similar outcomes in 2023 and 2024, though previous rejections ultimately led to new agreements after renegotiations.