The entrance to SK hynix in Seongnam, south of Seoul. (Image courtesy of Yonhap)
SEOUL, Sept. 1 (Korea Bizwire) — SK hynix Inc. and its labor union reached a tentative wage deal Monday that includes a 6 percent pay rise and the removal of the ceiling on so-called profit-sharing bonuses, industry sources said.
After 11 rounds of negotiations over the past three months, the management and the union decided to scrap the cap on profit-sharing bonuses, which had been limited to 1,000 percent of employees’ basic pay.
SK hynix will also allocate 10 percent of its annual operating profit to the profit-sharing bonus program.
The pay increase fell short of the union’s initial demand for an 8.25 percent hike.
The tentative deal is expected to be finalized this week following approval by union members.
The company’s second-quarter operating profit surpassed 9 trillion won (US$6.45 billion) for the first time in its history, driven by booming demand for artificial intelligence (AI) chips, including high bandwidth memory.
(Yonhap)
