SK Hynix to pay 60% of bonuses in shares under tentative wage deal with union: report
Deal expected to be put to union members for approval soon
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SK HYNIX and its labour union have reached a tentative wage and collective bargaining agreement, featuring a 6.3 per cent salary increase and a significant shift in how employee performance bonuses are apportioned, according to Yonhap News.
Under the tentative agreement, profit-sharing bonuses to employees will be paid out 40 per cent in cash and 60 per cent in company shares, replacing the previous all-cash structure, Yonhap reported, citing the union.
Union officials did not immediately answer calls for comment, while an SK Hynix spokesman declined to comment.
The agreement caps weeks of negotiations at a time when the South Korean chipmaker is reaping benefits of surging demand for high-bandwidth memory used in artificial intelligence systems. The deal is expected to be put to union members for approval soon.
A sticking point during the negotiations was the proposal from management to shift a substantial portion of bonuses from cash to shares, including restricted stock that employees would not be able to sell immediately. The union had initially opposed the plan, arguing that it undermines a profit-sharing framework agreed upon only in 2025.
Under that deal, SK Hynix agreed to remove a ceiling on its profit-sharing bonus and allocate 10 per cent of annual operating profit to employees in cash for 10 years.
The sheer size and structure of these bonuses have become a focal point not only for the company and its staff but for businesses across South Korea amid a booming tech sector. BLOOMBERG
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