SK hynix union rejects tentative wage deal

SK hynix production workers’ union rejected the tentative wage and collective bargaining agreement after a closely fought vote, with 15,045 of 16,038 members participating (93.81% turnout) and 7,535 voting against to 7,510 for, a margin of 25 votes. The dispute centered on how to distribute the excess profit sharing, with proposed terms allocating 40% of PS in cash and 60% in treasury stock, plus staggered stock payouts and a potential cash option for the 2026 PS payout. A safeguard was included to mitigate stock-price risk by determining share issuance using the lowest closing price on several key dates. Following the rejection, management and the union plan to resume negotiations and hold another yes-or-no vote. Reports also describe a separate rejection of a preliminary pay agreement by about 50.1% of votes, underscoring ongoing labor tensions that could affect operations and morale. The unified union’s stance—advocating for cash-based PS—appears to be influencing the direction of talks after last year’s move to remove the cap on performance bonuses and set aside 10% of operating profit for the pool.