SK hynix has finalized its 2026 wage and collective bargaining agreement after union members approved a revised proposal, ending negotiations that were extended after an initial tentative deal was rejected last month.
The revised agreement received 8,731 votes in favor, or 57.08%, in a union vote held over two days from Sept. 15 to 16, according to the company.
The vote followed roughly two weeks of intensive negotiations after union members rejected the first tentative agreement on Aug. 25. The two sides reached a revised deal on Sept. 9, with changes focused largely on how employees can receive performance incentives.
Employees Given Greater Choice Over Cash and Shares
Under the initial agreement, performance incentives were to be paid 40% in cash and 60% in company shares. The revised agreement changes the basic allocation to an even 50-50 split between cash and shares.
At the same time, employees will have greater flexibility to adjust that mix. They can convert the cash portion into shares in increments of 10 percentage points, allowing those who choose to do so to receive their entire performance incentive in SK hynix shares.
The change shifts the system away from a single predetermined allocation and gives individual employees more control over how their incentives are paid.
SK hynix said the company and the union held around 60 briefing sessions ahead of the second vote to explain the purpose, structure and expected effects of the revised system to employees.
The agreement also formally introduces a provision allowing wages to be deferred when the company posts a loss. The arrangement is intended to complement performance-based rewards during profitable periods with a mechanism for employees and management to share the burden during downturns.
Deal Comes as AI Memory Business Drives Earnings Growth
This year’s negotiations have drawn attention as SK hynix continues to benefit from strong demand for high-bandwidth memory, or HBM, used in artificial intelligence computing systems.
Against that backdrop, how the company shares performance gains with employees emerged as a key issue during the bargaining process.
The rejection of the first tentative agreement raised the possibility of prolonged negotiations, but the two sides returned to the bargaining table and revised the incentive payment structure before putting the agreement to another vote.
SK hynix described the outcome as the result of continued negotiations between management and labor following the initial rejection.
“We thank the labor union and our employees for working with us through a difficult process,” SK hynix said. “We will continue to work together with our employees to address the challenges we face.”
SK hynix and the union plan to hold a signing ceremony for the final agreement before the Chuseok holiday, formally concluding this year’s wage and collective bargaining process.
