SK Hynix and Union Clash Over Stock-Based Bonus Payments

SK Hynix and its labor union are renegotiating the payment method for performance bonuses after the company proposed using treasury shares instead of cash ^[1].

The dispute highlights a growing tension between corporate efforts to preserve liquidity and worker demands for guaranteed financial rewards during a period of high profitability.

Management intends to convert a portion of the bonuses into company stock to reduce the immediate burden of cash payments and increase shareholder value ^[1]. However, the labor union has expressed strong opposition, citing the risks and uncertainty associated with stock-based compensation ^[1].

Financial data shows the company reported an operating profit of 4.7 trillion won last year ^[1]. For the current year, operating profit forecasts vary, with reports citing figures of 27 trillion won and 270 trillion won ^[1].

Under the previous payment structure, 80% of bonuses were paid in cash, while the remaining 20% were distributed over a two-year period ^[1]. The scale of these incentives is significant, with average per-person bonuses reaching between 700 million and 800 million won ^[1].

Negotiations have been ongoing, with formal sessions held on the 14th and 21st of the month ^[1]. Despite these meetings, the outcome remains unclear as the union continues to resist the shift toward equity-based rewards.

Company representatives said the proposal is a strategic move to align employee interests with the long-term growth of the firm ^[1]. Union leaders said the volatility of the stock market makes shares an unreliable substitute for cash payments ^[1].