SK hynix recognizes new union as pay talks return to table

SK hynix headquarters in Icheon, Gyeonggi Province (Yonhap) SK hynix has formally recognized a newly formed union representing production and office workers, while making clear that the group has no bargaining rights in the chipmaker’s ongoing wage negotiations.The company confirmed the legal status of the Hynix Integrated Labor Union in a letter sent Wednesday, according to industry sources Friday. The union, established earlier this month, has about 3,470 members, or roughly 10 percent of SK hynix’s workforce.The recognition comes after members of another union at the company rejected a tentative wage agreement Tuesday, sending management and labor back to the negotiating table.The proposed deal included a 6.3 percent wage increase, stronger benefits and changes to SK hynix’s profit-sharing bonus scheme. Under the plan, 60 percent of the profit-sharing bonus would be paid in company shares, although employees would be allowed to take up to 80 percent of next year’s payout in cash.The new union has asked SK hynix for details on the ongoing wage talks, including discussions over pay, bonuses and benefits, and has sought separate collective bargaining with management.SK hynix said the union has legal standing but cannot take part in the current bargaining round because it did not join the process when negotiations began. The company also declined to share detailed information from talks with the existing union, citing concerns that doing so could interfere with the other union’s bargaining activities.The integrated union, which represents production, technical and office workers, said it planned to hold an introductory meeting with management and pursue its own collective agreement.Its membership has been rising since the tentative wage deal was rejected, according to industry sources, raising the prospect of a more fragmented labor landscape at SK hynix.SK hynix and the existing union are expected to resume negotiations over the rejected agreement, with the structure of performance bonuses likely to remain a key point of contention.