New proposal shifts default payout to 50-50 cash-stock split after union members rejected earlier deal by 25 votes
SK hynix has increased the cash portion of its proposed performance bonuses after union members narrowly rejected an earlier agreement.
Under a revised tentative deal announced Thursday, the chipmaker will pay its profit-sharing bonuses 50 percent in cash and 50 percent in company shares by default. The previous proposal called for 40 percent cash and 60 percent shares.
Employees who prefer more stock may choose a share-based payout of between 50 percent and 100 percent in increments of 10 percentage points.
The revision follows union members’ rejection of an initial wage and collective bargaining agreement on Aug. 25. That proposal included a 6.3 percent wage increase and called for 60 percent of performance incentives to be paid in shares.
The agreement failed by just 25 votes, with the shift away from cash bonuses emerging as a key concern among employees.
The revised package retains the broader framework of the original deal while giving workers greater flexibility over how they receive their incentives.
SK hynix and the union also agreed to accelerate deferred profit-sharing payments tied to last year’s earnings. Those payments had initially been scheduled for distribution over the next two years.
The two sides additionally expanded employee welfare benefits. Extra housing loan support, previously available only to married households, will be extended to single-parent families.
The revised agreement will first be reviewed at an interim meeting of union delegates. Union members will then vote on it Tuesday and Wednesday.
Approval would conclude wage negotiations that resumed after the original agreement was rejected last month.
During an employee meeting on Sept. 2, SK hynix CEO Kwak Noh-jung said the company would continue consulting workers on the remaining details of its compensation system.
“Last year, we reached an agreement on the broad framework, and we will continue to work through the details together with our employees,” Kwak said. “We will make efforts so that the company and its employees can continue to grow together with pride.”
By Jie Ye-eun (yeeun@heraldcorp.com)
