SK hynix reaches tentative wage deal with union, removing profit-sharing cap, avg payout ~$50,000

Published Aug 20, 01:15 PM UTC

SK hynix and its labor union have reached a preliminary 2026 wage and collective bargaining agreement, averting a potential strike. The deal includes a 6.3% wage increase and a major overhaul of the profit-sharing program. The previous 10% cap on operating profit allocated to employee bonuses has been removed, potentially increasing the total pool. Under the new scheme, 40% of performance-based profit distribution will be paid in cash and 60% in SK hynix stock, a change from the all-cash system. The union had argued stock bonuses expose workers to investment risk and tax complications. If current market expectations hold, the profit-sharing pool could reach 2.5 trillion won ($1.79 billion), averaging 70 million won ($50,120) per employee. The agreement maintains the new mechanism for 10 years.