SK hynix reaches tentative deal for 6.3% wage hike and stock-based bonuses

SK hynix management and labor unions have reached a tentative agreement for the 2026 wage and collective bargaining agreement. The deal includes a 6.3% wage increase and a significant shift in the profit-sharing (PS) structure. Under the new terms, 40% of the profit-sharing amount will be paid in cash, while the remaining 60% will be distributed in the form of company stock.

To protect employees against stock price volatility, the agreement stipulates that the number of shares will be calculated using the lowest closing price among three specific dates: the performance announcement date in January, the cash payment date in February, and the stock distribution date in April. Additionally, the company has agreed to provide cash compensation if the total value of the distributed shares falls below the originally calculated profit-sharing amount.

The agreement also formalizes a principle of shared responsibility during economic downturns. If the company records a deficit, a portion of wages will be deferred to ensure job security and facilitate rapid management normalization, with the understanding that these will be restored once operations stabilize.

While the labor unions are moving toward a final vote by delegates, several hurdles remain. The new stock-based compensation system requires approval from a general shareholders' meeting. Furthermore, the agreement faces potential scrutiny from government officials regarding the alignment of large-scale profit-sharing structures with shareholder interests.