SK Hynix labor, management near deal as final wage talks set for Tuesday

SK Hynix's labor union and management, after marathon negotiations over the recent holiday, will hold final talks Tuesday to try to clinch this year's wage and collective bargaining agreement.

The two sides appeared to have narrowed their differences during the holiday period, despite earlier tensions after management proposed paying part of performance bonuses in stock — a move that reversed a previous agreement and prompted the union to raise the possibility of industrial action.

According to industry sources, SK Hynix's labor and management held a sixth round of relay negotiations on Aug. 12, followed by marathon talks from Aug. 15 through Monday during the Liberation Day holiday, focusing intensively on key sticking points.

On Monday, the union shared an update with its members, saying the two sides had "achieved significant convergence on major agenda items" while noting that "legal and detailed operational reviews on some ancillary matters remain." The union said it believed the talks had "crossed the ninth ridge" — a Korean expression for being nearly over the finish line.

Before the holiday, the union had issued a sharp warning, saying a "direct decision by top management, Chairman Chey Tae-won, is needed" and threatening to "judge the company through a fight" if management avoided making a commitment. The holiday negotiations appear to have brought the two sides closer to an agreement.

With that progress, labor and management are set to hold representative-level negotiations at the Icheon campus Tuesday to determine whether a final deal on this year's wage and collective bargaining agreement can be reached.

In earlier main negotiations, management had proposed paying more than half of performance bonuses in stock rather than cash, with restrictions on selling shares for a set period. Management also raised the possibility of temporarily adjusting wages in the event of a loss, deepening the rift between the two sides.

The two sides had previously agreed to scrap the cap on the profit-sharing bonus — funded by 10 percent of the prior year's operating profit — and to maintain that framework for 10 years.

Under that agreement, 80 percent of the profit-sharing payout would be paid in cash in the year it is earned, with the remaining 20 percent — 10 percent per year — deferred and paid out over two years.

Employees have expressed frustration over management's proposal to pay bonuses in stock rather than cash, which would effectively reopen a previously settled agreement.

Workers have objected on the grounds that stock-based payouts would tie actual compensation to share price fluctuations, and that putting an already-agreed item back on the negotiating table is unacceptable.

A new integrated union representing both production workers and technology and office staff has also been launched, amid criticism that the existing union has not been transparent about negotiations and has taken a passive approach to bargaining. Since its launch on Aug. 13, the new union's membership has been approaching 3,000.

The integrated union has said that even if it does not become the majority union, it will pursue a member petition drive and use legal means to block any outcome that reverses the previous agreement — such as paying part of the performance bonus in stock.