An employee working at a semiconductor fab (factory) (Image courtesy of SK hynix)
SEOUL, May 30 (Korea Bizwire) — Following a historic year of profitability, the white-collar labor union at SK Hynix has entered annual wage negotiations with a bold proposal: an 8.25% salary increase alongside expanded performance bonuses and benefits.
The first round of 2025 wage talks was held on May 28 at the company’s Icheon campus, marking a critical juncture in post-pandemic labor relations for one of the world’s leading memory chipmakers.
The union’s proposal also includes raising salary caps, expanding the scope of regular wages to cover vehicle and fuel costs, improving performance evaluations, and guaranteeing up to 800% in annual achievement bonuses.
In addition, the union is pushing for a revision of the company’s Profit Sharing (PS) system, seeking the removal of existing payout limits and a higher distribution ratio. Since 2021, SK Hynix has allocated 10% of its annual operating profit for PS, linking payouts to individual performance metrics.
“While past wage hikes were driven by external factors, we now believe there’s room for a more rational increase based on performance and internal expectations,” the union said in a statement.
Management responded by emphasizing a data-driven approach that reflects both internal and external business conditions. It also acknowledged the importance of gathering broad employee input before making changes to the PS framework. “We look forward to constructive and productive dialogue as talks progress,” the company stated.
SK Hynix Labor Union Pushes for Higher Wages, Bonus Reform (Image courtesy of Yonhap)
Last year, the two sides settled on a 5.7% raise, slightly above increases in 2022 (5.5%) and 2023 (4.5%), despite the union initially demanding a similar 8% hike.
SK Hynix’s strong financial rebound has added momentum to this year’s negotiations. After posting a record operating profit of 23.47 trillion won in 2024—driven largely by its leadership in high-bandwidth memory (HBM)—the company rewarded employees with a 1,500% performance payout, including 1,000% in PS and 500% in special bonuses, as well as 30 shares of company stock.
Wage negotiations are conducted separately within SK Hynix’s dual-union system, with the Korea Federation of Trade Unions representing workers at the Icheon and Cheongju plants, and the Korean Confederation of Trade Unions representing white-collar technical staff.
Kevin Lee (kevinlee@koreabizwire.com)
