{
    "success": true,
    "data": {
        "id": 1933058,
        "msgid": "thousands-of-workers-unite-not-just-to-demand-pay-rise-heres-the-result-1787302330",
        "date": "2026-08-21 15:20:00",
        "title": "Thousands of Workers Unite Not Just to Demand Pay Rise, Here's the Result",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Business",
        "summary": "SK Hynix workers in South Korea have reached a landmark agreement with management that will see at least 60% of this year's bonus paid in company shares rather than cash. The deal, which also includes a 6.2% base salary increase, marks a significant shift from previous cash-only bonus schemes. The agreement was reached independently between the newly formed union and management without external mediation.",
        "content": "<p>Workers at South Korean chipmaker SK Hynix will receive at least 60%\nof this year\u2019s bonus in the form of shares. This policy marks a\nsignificant change from previous years, which used a cash payment\nscheme.<\/p>\n<p>Based on Reuters calculations, workers are expected to receive an\naverage bonus of at least 779 million won (around Rp 9.9 billion) in\n2026.<\/p>\n<p>A spokesperson for the memory chip producer said the agreement still\nneeds to be approved through a vote by union members.<\/p>\n<p>This year\u2019s bonus will be distributed under several schemes:<\/p>\n<ul>\n<li><p>40% paid in cash.<\/p><\/li>\n<li><p>40% paid in shares.<\/p><\/li>\n<li><p>The remaining 20% paid in shares as deferred compensation, with\nhalf released after one year and the other half two years\nlater.<\/p><\/li>\n<\/ul>\n<p>In addition, the agreement includes a 6.2% increase in base salary.\nThere is also a clause allowing the company to defer payment of up to 3%\nof salary if the company incurs losses.<\/p>\n<p>\u201cThe union and management succeeded in finding a breakthrough\nindependently without relying on mediation or external parties,\u201d the\ncompany said, as quoted by Reuters on Friday (21\/8\/2026).<\/p>\n<p>Previously, workers officially launched a new labour union on\nThursday (13\/8) local time, aiming to unite employees from various\ndivisions and locations to strengthen their bargaining power with\nmanagement.<\/p>\n<p>Citing its official website, as reported by Reuters, nearly 2,500 SK\nHynix workers have registered with the new union after obtaining\napproval from the local government. SK Hynix itself employs around\n35,000 workers in South Korea.<\/p>\n<p>Unlike the old unions, which were fragmented by job type or factory\nlocation, the new union represents all SK Hynix employees, from factory\nworkers in Icheon and Cheongju to technical and office staff.<\/p>\n<p>Their short-term target is ambitious: to recruit more than 50% of the\ncompany\u2019s total workforce so the union can legally become the majority\nunion and take full control of negotiations with management.<\/p>\n<p>Tensions with management began with plans to change the company\u2019s\ninternal bonus scheme. Last year, SK Hynix allocated 10% of total\noperating profit as cash bonuses for employees, based on a 10-year\nagreement. However, for this year, management initially proposed that\nmost of the bonus be shifted to shares.<\/p>\n<p>The bonus issue also attracted the attention of investors. They\nquestioned the allocation of 10% of profit for bonuses, fearing it could\nerode the company\u2019s capital expenditure (capex) allocation while\nreducing returns for shareholders.<\/p>\n<p>Meanwhile, its main rival, Samsung Electronics, has also reached a\nsimilar agreement with its labour union regarding performance bonuses.\nSamsung agreed to allocate 10.5% of the semiconductor division\u2019s\noperating profit as worker bonuses in the form of shares, accompanied by\nlock-up period rules for most of those shares.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/thousands-of-workers-unite-not-just-to-demand-pay-rise-heres-the-result-1787302330",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}