SK Hynix Labor and Management Tentatively Agree on Renegotiation of Wage Talks... One-Team Encouragement Bonus of 4.5 Million KRW to Be Paid at Once

47 Days After Initial Tentative Agreement Rejected
5.7% Wage Increase Rate Maintained This Year

The SK Hynix full-time (production) labor union and management have reached a re-agreement 47 days after the tentative wage negotiation agreement was rejected this year. The agreement includes a one-time payment of 4.5 million KRW as a 'One Team Mind Encouragement Bonus' to employees who contributed to the company's growth, and an extension of long-term service leave from the existing 7 days to 10 days.

SK Hynix Headquarters, Icheon-si, Gyeonggi-do [Image source=Yonhap News]

According to industry sources on the 23rd, the SK Hynix full-time labor union reached a '2024 renegotiation tentative agreement' the day before and explained these details to members at the Icheon and Cheongju campuses this afternoon.

Previously, SK Hynix labor and management had prepared a tentative agreement in early September that included a 5.7% wage increase, an increase in the medical expense support limit, and the establishment of a special paternity leave system for male employees. However, unlike the technical office workers' union which approved the tentative agreement, the full-time labor union rejected it with 70.6% voting against in the delegate vote.

This was reportedly due to failure to find common ground with management on the shift work system and detailed agenda items. Subsequently, after seven rounds of main negotiations, the full-time labor union and management prepared a new tentative agreement. It included an increase of 1 million KRW from the initially planned 3.5 million KRW (fixed amount) bonus, given as a token of appreciation for the record-high performance in the second quarter, raising the amount to 4.5 million KRW. Regarding spousal childbirth leave, support will be provided up to 25 days (divided into 3 times) regardless of the number of children born, and long-term service leave, which was previously 7 days granted every 5 years, will be extended to 10 days.

However, the 5.7% wage increase for this year remains unchanged. The full-time labor union plans to hold a vote on the tentative renegotiation agreement on the 28th to make a final decision on the matter.