SK hynix labor and management drew up a revised tentative agreement adjusting the base payout ratio of the performance bonus, the profit sharing (PS), to 50% cash and 50% stock. After the previous tentative deal was voted down by a margin of 25 votes, they increased the cash portion and expanded members' options on the stock payout ratio.
SK hynix said on the 10th that labor and management drew up the revised tentative agreement on the 9th. The union plans to hold an emergency delegates' meeting the same day and then conduct a companywide vote on the revision over two days on the 15th–16th.
The revision changes the base PS payout ratio from 40% cash and 60% stock to 50% cash and 50% stock. Members can choose the stock payout ratio in 10% increments from the base 50% up to 100%. While increasing the cash share, it gives members who want more in stock the option to choose.
Payouts deferred during the transition in the performance bonus payment method will also be moved up. Among PS calculated based on last year's results, the portions that were to be paid next year and the year after will be paid in advance.
The home loan support program was also partially adjusted. Previously, eligibility for additional support beyond the basic support was limited to married households, but under the revision, single-parent families will also be included.
Earlier, SK hynix labor and management prepared a tentative agreement that included a 6.3% increase in base pay and paying 40% of PS in cash and 60% in treasury shares. Of the stock portion, 40% would be paid immediately, with the remaining 20% split into 10% after one year and 10% after two years.
On the 25th of last month, in the tentative agreement vote by the union representing all employees, the tentative deal with these terms was rejected with 7,510 votes in favor and 7,535 against. The margin was only 25 votes. The deal passed in the engineers and office workers' union, but was voted down in the all-employees union, prompting labor and management to reopen talks.
The key to this revision is that it maintains the broad framework of the existing deal while lowering the proportion of treasury shares—an issue among members—and broadening choice. If the revision passes the companywide vote on the 15th–16th, this year's wage and collective bargaining agreement is expected to move toward conclusion.