SK hynix revises profit-sharing plan ahead of second union vote

  • SK hynix and its union reached revised PS terms for a second membership vote.
  • The revised plan sets 50% cash and 50% stock, with employee choices up to 100% stock.
  • Full-time union members will vote September 15–16 after rejecting the earlier agreement by 25 votes.

SK hynix and its union have reached a revised tentative labor agreement for a second vote on September 15–16, after full-time workers rejected the previous proposal by 25 votes. The revised profit-sharing, or PS, plan changes the standard allocation to 50% cash and 50% treasury stock, up from 40% cash and 60% stock, while allowing employees to choose a stock share of between 50% and 100% in 10-percentage-point increments. The proposal preserves the 80%-10%-10% payment schedule, maintains compensation protection against declines in stock value, changes deferred-payment interest calculations from after-tax to pre-tax amounts and accelerates payment of last year’s deferred 592.8% PS, including 4.5% interest if the wage agreement is finalized. Housing-loan support is expanded from married households to include single-parent families, with eligible employees able to access up to 200 million won, or about $150,000. Approval would put this year’s wage and collective bargaining process on track to conclude about three weeks after the first agreement was rejected.

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