SK hynix (000660.KS) and its labor unions are returning to the bargaining table on wages and a collective agreement, after production workers narrowly rejected a tentative deal reached earlier in negotiations. The company's technical and office workers, however, accepted the same agreement with an approval rate in the 60% range.
The tentative deal was voted down by SK hynix's production-worker union, with 50.08%, or 7,535 members, opposed and 49.92%, or 7,510, in favor, according to industry sources on the 25th. The gap came to just 25 votes. Turnout reached 93.81%.
The technical and office-worker union, which also completed its vote that day, approved the deal with a majority in the 60% range. The two unions negotiate separately with management, and the results apply to each group individually. The production-worker union will now resume talks. If it revises the agreement through renegotiation, the changed terms could also be applied retroactively to technical and office workers. The company said the matter "will require further consultation between labor and management."
The two sides had earlier agreed to a 6.3% wage increase and a profit-sharing (PS) payout structure under which 40% would be paid in cash and 60% in company stock. But analysts said workers on the ground were deeply concerned about the risk of stock-price volatility and about a possible future increase in the share paid in stock. Even so, support ran nearly even, driven by a wage increase that outpaces rival Samsung Electronics (6.2%) and by improvements to existing benefits.
Industry watchers expect the balance between company stock and cash to become the biggest sticking point in the coming renegotiation. Given the sharp differences among members over the existing bonus system, some say the talks could drag on before a final agreement is reached.
