[Edaily Reporter JAEMIN SONG ] SK hynix management and labor have reached a tentative agreement on this year’s wage and collective bargaining agreement, under which 60% of the profit-sharing (PS) payments will be distributed in the form of company stock. With a compromise reached on the payment of performance-based stock—the key sticking point—the negotiations are now moving toward a final settlement.

According to SK hynix on the 20th, management and labor have tentatively agreed that 40% of the PS payment will be distributed in cash and 40% in company stock in the same year. The remaining 20% will be deferred and paid in company stock—10% one year later and 10% two years later. This structure entails paying 60% of the total performance bonus in company stock.

The 40% of shares paid in the current year can be sold in the year they are received. The deferred portions can be sold one year and two years after receipt, respectively. Employees can choose one of two options for the deferred portions: either lock in the number of shares for the year of payment, or lock in the amount to be received and then determine the number of shares based on the stock price at the actual payment date.

Employees may also choose the proportion of shares they receive. While 60% of the PS serves as the default standard for stock payments, employees may increase this proportion to a maximum of 100% if they wish. In 2027, the first year of implementation, a cash option will also be granted to employees with valid reasons, taking into account existing financial management plans and other factors.

When calculating the number of shares, the lowest closing price among three specific dates—the date of the annual preliminary earnings announcement, the PS cash payment date, and the stock payment date—will be applied. This mechanism is designed to mitigate the burden on employees of receiving fewer shares due to stock price fluctuations.

Previously, last year, management and labor agreed to maintain a system for 10 years whereby 10% of operating profit would be allocated as PS funding and the payment cap would be eliminated. At that time, it was decided that 80% of the PS would be paid in cash in the current year, and the remaining 20% would be paid in cash over two years, 10% each year. The union has opposed the company’s stock payment proposal, arguing that it not only revises last year’s agreement after just one year but also shifts the risk of stock price fluctuations onto employees.

The tentative agreement also includes a provision to defer up to 3% of wages in the event of a loss. However, this measure will be implemented only after management and labor agree on specific crisis-management plans, including employment stability measures, and the deferred wages will be paid immediately once the company’s operations return to normal.

SK hynix explained, “We have refined the performance-based bonus system to better align the interests of all stakeholders, reflecting the idea that employees grow alongside shareholders,” adding, “Management and the union have come together to share both performance and crisis.” The company also emphasized that management and the union developed their own crisis-management model based on past instances of voluntary unpaid leave and the partial deferral of wages during the 2023 semiconductor downturn.