SK Hynix's labor and management are facing intense conflict during this year's wage and collective bargaining negotiations, following Chairman Choi Tae-won’s suggestion of possible changes to the bonus system. Amid the union's opposition to the company's proposal to pay bonuses in company stock, Choi's comments have raised concerns among employees, who fear this may be a pretext to reduce the existing bonus structure.
On July 20, members of the SK Hynix labor union expressed their frustrations in anonymous communication channels and community forums, sharing Choi's remarks. They criticized management for using government policies as an excuse for insincere negotiations, stating, "Now they are publicly pressuring us to change the bonus system itself."
One union member pointed out, "They only mention 'stakeholder interests' when they want to cut bonuses. Employees have worked hard overnight to achieve results, and now they want to take away fair compensation."
Previously, during a recent meeting at the Jeju Forum hosted by the Korea Chamber of Commerce and Industry, Choi acknowledged the controversy surrounding SK Hynix's bonuses, saying, "I believe there are positive impacts, but if the happiness of our members infringes on stakeholder interests, we need to address that issue." This marks the first time Choi has officially mentioned the possibility of revising the bonus system.
Another union member echoed these sentiments in a community post, stating, "How can we talk about changing bonuses when we are already receiving less than Samsung Electronics? This is exactly why unions exist," urging a strong response against management.
Industry observers believe Choi's comments could introduce new variables into the ongoing collective bargaining negotiations at SK Hynix. With the mention of potential changes to the bonus system alongside the stock payment proposal, the union's resistance against management is expected to intensify.
The union held its third round of negotiations on July 14 but failed to bridge the gap over the bonus payment method. During the talks, management reportedly proposed a plan to pay bonuses in company stock, similar to Samsung Electronics' approach.
Currently, employees can choose to receive up to 50% of their bonuses in company stock, but only if they opt for it. Those who hold the stock for more than a year receive an additional cash payment equivalent to 15% of the stock purchase price.
However, management has indicated that starting next year, they plan to implement a system mandating that 50% of bonuses be paid in company stock. This would include restrictions on selling the stock for a certain period, aiming to encourage long-term employment while enhancing shareholder value and responsible management.
In response, the union has firmly rejected this proposal, viewing it as a significant retreat in cash compensation. They believe it falls far short of the compensation levels they initially expected and could potentially reduce the actual amounts received.
As the semiconductor market shows signs of recovery, concerns are growing that prolonged conflict over bonuses could disrupt business operations.
An Gi-hyun, executive director of the Korea Semiconductor Industry Association, stated, "The longer the tug-of-war over bonuses continues, the more direct and indirect damage will spread not only to SK Hynix but also to the entire ecosystem of related materials and components. For the sake of strengthening the competitiveness of the domestic semiconductor industry, a swift resolution between labor and management is urgently needed."
* This article has been translated by AI.
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