SK Hynix union rejects stock-based performance pay proposal

Workers at SK Hynix have rejected a proposed agreement on performance-based pay, signaling discontent with the proposed distribution of bonuses. The labor union's vote saw 50.08% of members oppose the tentative deal, which aimed to pay 60% of performance bonuses in company stock and the remaining 40% in cash.

The rejected agreement followed a previous arrangement where 80% of performance pay was disbursed in cash, with the remainder spread over two years. The shift towards a higher proportion of stock, especially given its volatility, appears to have been a key factor in the union's decision. This marks the second year in a row that a tentative labor agreement has failed to gain approval.

With the tentative agreement now nullified, SK Hynix and its labor union are set to re-enter negotiations. The focus is expected to be on the contentious performance pay structure, with both sides aiming to find a resolution that satisfies the workforce. The company has a history of rejected agreements, having faced similar situations in 2023 and 2024.