Office Workers' Union to Hold Introductory Meeting on the 26th
The SK Hynix labor union has finalized a collective bargaining proposal that includes an approximate 8% wage increase this year and will hold consultations with management.
According to the semiconductor industry on the 26th, the SK Hynix Icheon and Cheongju plant full-time employee (production worker) union under the Federation of Korean Trade Unions (FKTU) conducted a vote among union members on the '2024 Collective Bargaining Proposal' and approved the proposal.
The proposal includes a wage increase demand totaling 327,756 KRW, which consists of an average job-based wage increase of 240,000 KRW (applying fixed and percentage rates) and an average career-based wage increase of 87,756 KRW. This represents about an 8% increase compared to the current average job-based wage (2,960,136 KRW) of full-time employees. This figure reflects the 2% preliminary increase set at the beginning of the year. The full-time employees' annual salary is composed of job-based wages, career-based wages, and performance-based wages, with job-based and career-based wages included in the base salary.
Last year, due to the downturn in the semiconductor industry, the wage increase rate for full-time employees was limited to 4.5%. In 2021 and 2022, wage increases were 8% and 9%, respectively. This year, as the industry has entered a recovery phase and performance has improved, the wage increase rate demanded by the union appears to have risen.
The wage negotiation proposal also includes the full inclusion of 179% of performance-based wages, full payment of fixed overtime allowances, full payment of 210,000 KRW shift allowances as part of the ordinary wage calculation, and the abolition of the cap on excess profit performance bonuses (PS). The proposal also includes increasing the PS from 10% to 15% of operating profit. Additionally, it contains demands for extending the retirement age to 65 and abolishing the wage peak system.
The full-time employee union is scheduled to hold an introductory wage negotiation meeting with management on the 27th. Following this, formal negotiations will proceed to reach a tentative agreement, which will then be subject to a delegate vote to finalize the wage negotiations.
Separately, the office worker union, which is conducting separate wage negotiations, reportedly held their introductory meeting on the 26th.
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