SK Hynix is actively moving to establish a unified union that encompasses both production and technical staff. This initiative comes as the company has reopened negotiations on the bonus system agreed upon by labor and management last year, leading to increased discontent among employees and dissatisfaction with the existing union's negotiation methods.
According to Yonhap News Agency on August 9, SK Hynix employees have recently formed a preparatory meeting for the establishment of the unified union and have begun the necessary procedures.
Since its inception on August 5, the preparatory meeting has reportedly attracted over 3,500 participants, representing about 10% of SK Hynix's total workforce of approximately 35,000.
The interim chairperson of the unified union announced on August 8 that they have submitted the application for union establishment. A formal union is expected to be launched as early as next week.
Currently, SK Hynix has two separate unions: one for technical staff under the Korean Confederation of Trade Unions and another for full-time employees at the Icheon and Cheongju factories affiliated with the Federation of Korean Trade Unions. These unions are negotiating wages and collective agreements independently.
The proponents of the unified union aim to consolidate the negotiation structure divided between production and technical staff to more effectively convey the demands of the workforce. If the unified union secures the status of a representative negotiating union, it could alter the dynamics of future wage negotiations.
The immediate impetus for the unified union's formation is the issue surrounding bonuses. Last year, SK Hynix and its labor representatives agreed to eliminate the cap on the distribution of excess profit sharing (PS), which is based on 10% of operating profit, and to maintain this system for ten years.
Under this agreement, 80% of the PS is paid in cash, while the remaining 20% is distributed over two years. However, internal dissent has grown as the company reportedly proposed to pay part of this year's bonuses in stock, with restrictions on selling for a certain period.
Employees are concerned that the actual compensation could vary with stock price fluctuations and are troubled by the inclusion of the previously agreed bonus system in the current negotiations.
The interim chairperson of the unified union has stated that the primary goal of the new union's launch is to ensure the implementation of last year's bonus agreement. They also expressed the intention to separate the bonus issue from current wage negotiations and to prevent it from being included in future renegotiations over the next decade.
Dissatisfaction with the existing unions has also influenced the movement to establish a new union. Although negotiations have progressed to the fifth round, there has been little advancement on the bonus issue, leading to criticism regarding insufficient member feedback and transparency in negotiation content.
The government's push for reform of the bonus system has also emerged as a variable. On August 6, Minister of Trade, Industry and Energy Kim Jeong-kwan expressed opposition to linking bonuses to operating profit during a discussion forum and indicated that he is in talks with relevant ministries about amending related laws.
The Ministry of Employment and Labor is expected to release guidelines this month that will clarify the scope and subjects of labor negotiations, including bonuses. There are reports among SK Hynix employees that the existing union has not adequately responded to the potential for government reforms.
The growth of Samsung Electronics' mega union is also being cited as a comparison within SK Hynix. At one point, Samsung's mega union expanded its membership to over 76,000, securing a majority union status and achieving the establishment of a special semiconductor performance bonus in this year's wage negotiations.
As examples of large unions enhancing their bargaining power emerge, there is increasing support for the necessity of a consolidated union at SK Hynix.
However, it remains uncertain whether the new union will be able to participate in the current wage negotiations immediately after its establishment, as workplaces with multiple unions must undergo a process to unify negotiation channels and designate a representative negotiating union.
An industry insider noted, "The ability to secure the status of a representative negotiating union is more important than the establishment of the unified union itself. It remains to be seen whether they will participate in the ongoing wage negotiations or if their influence will be felt starting next year."
* This article has been translated by AI.
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