[Edaily Reporter SOYEON KIM ] SK hynix management and labor representatives are continuing discussions to reach an agreement on this year’s wage and collective bargaining agreement. It is reported that the two sides continued negotiations even during the Liberation Day holiday in an effort to bridge their differences. Attention is focused on whether they will present a proposed agreement on the wage and collective bargaining agreement today, including a proposal to pay performance bonuses in the form of stock.

According to industry sources on the 18th, SK hynix management and the union will hold representative-level negotiations at the Icheon campus to discuss whether to finalize the wage and collective bargaining agreement.

Following the sixth round of relay negotiations on the 12th, the labor and management sides at SK hynix gave up their holidays from the 15th to the 17th—during the Liberation Day holiday—to engage in marathon negotiations aimed at bridging the gap between them.

The union shared the progress of the negotiations with its members the previous day, stating, “Although legal reviews of certain matters and detailed operational reviews remain, we have achieved significant convergence of views on the main agenda items,” and adding, “We believe we have cleared the nine-tenths mark in the negotiations.”

In this year’s collective bargaining negotiations, SK hynix management and the union have been negotiating over issues such as wage increases and the method of paying performance bonuses. In particular, there was a significant difference in position between the two sides regarding a proposal to pay a substantial portion of the performance bonus in the form of company stock.

Last year, SK hynix’s management and labor union agreed to abolish the cap on the Profit Sharing (PS) program—funded by 10% of operating profit—and to maintain this system for 10 years. The core of the agreement stipulates that 80% of the PS payment is distributed in cash during the same year, while the remaining 20% is deferred and paid out over a two-year period.

However, it is reported that during this year’s negotiations, management proposed a plan to pay a significant portion of performance bonuses in the form of company stock, with restrictions on selling the shares for a certain period. This has sparked strong opposition among employees. Employees are voicing dissatisfaction, noting that paying bonuses in stock could cause the value of their compensation to fluctuate with stock price changes, and that this would constitute another change to the performance bonus system that was agreed to last year to remain in place for 10 years.

Management and the union are also discussing a plan to adjust wages in the event of a loss. Observers note that if the final agreement between management and the union includes a provision to pay performance bonuses in the form of company stock, employee opposition is likely to persist. There are also concerns that this year’s wage and collective bargaining negotiations could drag on.