SK Hynix labor and management have prepared a tentative revised agreement on the Labor-Management Agreement (LMA) to increase the cash payment ratio of the excess profit sharing (PS) from 40% to 50% and allow employees to choose their stock payment ratio. The core of the revision is maintaining the overall framework of the original agreement while expanding employees' choice regarding stock payments.
SK Hynix's production workers union held an emergency Lim Si-dae (Rep.) meeting on the 10th and explained the revised tentative agreement prepared by labor and management the previous day to delegates. The union will hold explanatory sessions for members starting this afternoon and plans to put it to a general vote on the 15th or 16th.
The revision adjusts the basic payment ratio of PS from 40% cash and 60% stock to 50% cash and 50% stock. If employees wish, they can choose the stock payment ratio in increments of 10%, ranging from 50% up to a maximum of 100%.
The timing of performance bonus payments has also been adjusted somewhat. Of the bonuses calculated based on last year's results, 80% will be paid at the beginning of this year, and the payment schedule for the remaining 20% (previously deferred to next year and the year after) will be brought forward. This measure aims to reduce confusion that could arise during the transition in performance bonus payment methods.
Welfare systems have also been improved. The scope of additional support for housing loans has been expanded from married households to single-parent families.
Previously, labor and management had prepared a tentative agreement to raise wages by 6.3% and pay PS with 40% in cash and 60% in company stock, but it was rejected in a yes-no vote by union members on the 25th of last month by a margin of 25 votes (7,510 in favor, 7,535 against). At that time, 20% of the company stock portion was to be paid over two years, and for the 2026 PS payable at the beginning of next year, employees could choose to receive 40% of the stock portion in cash.
It remains to be seen whether the revised tentative agreement will gain approval from members in the general vote scheduled for the 15th or 16th. Industry observers note that since the margin between yes and no votes in the previous ballot was only 25 votes and payment methods were improved after the rejection, there is a high likelihood this agreement will pass.
Meanwhile, given that recent forecasts from the securities industry project SK Hynix's annual operating profit for this year to reach approximately 250 trillion won, applying this figure simply suggests that the average PS per employee could amount to around 700 million won (pre-tax).
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