SK Hynix Workers Reject Pay Deal, Talks Resume

SK Hynix employees have voted down a proposed wage agreement, prompting negotiations to restart.

According to Yonhap News Agency, on Tuesday, SK Hynix workers voted against a preliminary wage deal reached after two months of discussions. In the electronic vote, union member turnout was 93.8%, with 50.08% voting against the agreement.

Both management and the union will resume negotiations. The upcoming discussions are expected to focus primarily on performance-based incentive payment schemes, which were a key point of contention in previous talks. The union had also rejected tentative agreements in 2023 and 2024, leading to renewed rounds of negotiations.

SK Hynix did not immediately respond to requests for comment.

South Korean Chipmaker Navigates Labor Relations and U.S. Demand

Reports indicate that last week, SK Hynix and its union reached a preliminary agreement, including a 6.3% wage increase and a revised performance-based incentive structure. Under the proposal, 40% of incentives would be paid in cash and 60% in company stock. Of the stock portion, 40% would be sellable in the year of grant, with the remaining 20% deferred and distributed in 10% installments over the following two years.

This development follows a similar situation at Samsung Electronics Co., Ltd. Samsung's labor union called off an 18-day strike in May after a last-minute wage agreement. The strike, planned by nearly 48,000 union members, was canceled following negotiations over bonus payments. The agreement was subsequently put to a vote.

Meanwhile, U.S. officials are reportedly urging South Korea and its chipmakers to accelerate investments in memory chip production within the United States and ensure stable supply. Pressure has intensified after Seoul announced a $578.5 billion semiconductor mega-project, with Washington's primary concern being delays in planned U.S. investments. The issue was also discussed during Trade Minister Kim Jung-gwan's visit to the U.S., where Seoul maintained that semiconductor demand is separate from last year's $350 billion U.S. investment agreement.