A temporary wage agreement between South Korean chipmaker SK Hynix and its union has been rejected by union members. According to a source familiar with the matter, a slim majority of slightly over 50% voted against the proposed deal on Tuesday.
The proposed agreement, reached last week, included a 6.3% increase in employee salaries and a revised profit-sharing bonus system. Under the new structure, 40% of the bonus would have been paid in cash, with the remaining 60% distributed as company stock.
The voting saw 15,045 employees participate, with 50.08% casting their ballot against the deal. This outcome signifies a setback in negotiations between the company and its workforce.
SK Hynix, the world’s second-largest memory chip manufacturer, has recently seen a significant boost in its financial performance. This surge is largely attributed to the booming demand for High Bandwidth Memory (HBM) chips, which are crucial components for artificial intelligence applications. Despite the company’s strong profitability, the union’s decision highlights ongoing discussions regarding compensation and benefits.
Further details regarding the union’s specific concerns or the next steps in the negotiation process have not yet been disclosed. The rejection of the provisional agreement means that both parties will likely need to return to the negotiating table to forge a new path forward. The implications of this vote on future labor relations and employee satisfaction at SK Hynix remain to be seen.
