[Edaily Reporter SOYEON KIM ] Labor and management at SK hynix have reached a revised tentative agreement to lower the proportion of performance-based bonuses (PS), known as excess profit distribution, paid in the form of company stock from 60% to 50%. This comes after the initial tentative agreement was rejected in a union member vote, prompting both sides to re-enter negotiations. Labor and management are aiming to finalize the wage and collective bargaining agreement before Chuseok.

According to SK hynix on the 10th, the labor and management sides reached this revised tentative agreement on the 9th. The union plans to hold a general vote among its members over two days, the 15th and 16th, following an extraordinary delegates’ meeting held that day.

The revised agreement adjusts the basic distribution ratio for performance bonuses from the previous 40% cash and 60% company stock to 50% cash and 50% company stock. Additionally, it allows employees to directly choose the proportion of their performance bonus to be received in company stock, ranging from 50% to a maximum of 100% in 10% increments. The company explained that this move expands employees’ options regarding the payment method for their performance bonuses.

Furthermore, it was agreed that 30% of the 50% share allocation would be paid out immediately, while the remaining 20% would be deferred and paid out in 10% installments.

Following the rejection of a tentative agreement last month, management and labor resumed negotiations and re-examined the performance bonus payment method. They revised the agreement to increase the proportion of cash payments compared to the original proposal and to allow employees to choose the percentage of their bonus paid in company stock based on their preferences.

Furthermore, they agreed to advance the portion of the performance bonus—calculated based on last year’s performance—that had been deferred for payment next year and the year after. This measure is intended to minimize any confusion among employees that may arise during the transition to the new performance bonus payment method. If the agreement is approved in a union-wide vote, the deferred performance bonus is expected to be paid immediately before the Chuseok holiday.

Some adjustments were also made to the housing loan program. In addition to the basic support, the eligibility for additional support—which was previously limited to “married households”—will be expanded to include “single-parent households.”

Previously, management and the union had reached a tentative agreement last month centered on a 6.3% wage increase and a performance bonus paid 40% in cash and 60% in company stock. However, on the 25th of last month, the tentative agreement was rejected in an electronic vote conducted by the SK hynix full-time (production) workers’ union, with 50.08% voting against it. The margin between the “yes” and “no” votes was a mere 25 votes.

If this revised tentative agreement passes the union members’ general vote, SK hynix management and the union are expected to finalize this year’s wage and collective bargaining negotiations before the Chuseok holiday. Since the tentative agreement was previously approved in a vote by the technical and administrative staff union, this re-vote by the full-time production workers’ union will effectively determine whether the wage and collective bargaining agreement is finalized. Conversely, if this revised proposal is also rejected, management and the union will have to return to the negotiating table. The possibility of protracted renegotiations cannot be ruled out.