SK Hynix and its labor union are set to commence wage negotiations as early as June 22, 2026. This year's discussions are expected to be intense, with the union demanding improvements in working conditions to match those of Samsung Electronics, amid a recovery in the semiconductor industry.
According to industry sources on June 15, SK Hynix and its labor union have agreed to hold their first face-to-face meeting for wage negotiations and collective bargaining on June 22. During this meeting, both sides will align on negotiation guidelines and clarify their positions on key issues.
The labor union at SK Hynix operates under a three-union system, consisting of the 'Technical Staff Union' (affiliated with the Korean Confederation of Trade Unions), which represents college-educated engineers and office workers, and the 'Icheon and Cheongju Production Workers Union' (affiliated with the Federation of Korean Trade Unions), which focuses on field production staff.
Given the differing characteristics and demands of each union, the company plans to conduct individual negotiations. As a result, even if one union's demands are met, ensuring fairness with the other union will be essential, suggesting that reaching a final agreement may take some time.
The Technical Staff Union is expected to demand an 8% increase in base salary during this year's negotiations, aiming to reflect the recovery in semiconductor performance and address disparities in treatment compared to competitors. The union had previously proposed similar increases in 2024 and last year but ultimately agreed to a 6.2% increase.
Additionally, the union is likely to push for enhanced compensation tailored to job characteristics. They are advocating for a fair compensation system for overtime work arising from research and development duties. Improvements to the 'salary cap,' which limits salary increases after reaching certain years of service or ranks, are also expected to be key issues in this negotiation.
The Icheon and Cheongju Production Workers Union will form a joint negotiation team to lead the collective bargaining process. Their focus will be on supporting long-term employees and expanding housing stability. They are particularly concerned about the aging workforce and working conditions, demanding the abolition of the wage peak system, an increase in regular wages, and improvements in shift work conditions.
The pivotal moment in the SK Hynix labor negotiations will be how much the company is willing to accommodate the union's demands for treatment on par with competitors. With both unions citing Samsung Electronics as a benchmark for significant demands such as wage increases, R&D compensation, and increased housing loan limits, a tense atmosphere is anticipated from the initial meeting.
SK Hynix CEO Kwon Noh-jung has indicated that negotiations will begin this month, stating, "Recently, labor relations issues have become a concern for domestic companies. We must carefully address various internal and external situations to ensure we can grow even more significantly next year."
* This article has been translated by AI.
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