Thousands of Workers Unite Not Just to Demand Pay Rise, Here's the Result
Workers at South Korean chipmaker SK Hynix will receive at least 60% of this year’s bonus in the form of shares. This policy marks a significant change from previous years, which used a cash payment scheme.
Based on Reuters calculations, workers are expected to receive an average bonus of at least 779 million won (around Rp 9.9 billion) in 2026.
A spokesperson for the memory chip producer said the agreement still needs to be approved through a vote by union members.
This year’s bonus will be distributed under several schemes:
40% paid in cash.
40% paid in shares.
The remaining 20% paid in shares as deferred compensation, with half released after one year and the other half two years later.
In addition, the agreement includes a 6.2% increase in base salary. There is also a clause allowing the company to defer payment of up to 3% of salary if the company incurs losses.
“The union and management succeeded in finding a breakthrough independently without relying on mediation or external parties,” the company said, as quoted by Reuters on Friday (21/8/2026).
Previously, workers officially launched a new labour union on Thursday (13/8) local time, aiming to unite employees from various divisions and locations to strengthen their bargaining power with management.
Citing its official website, as reported by Reuters, nearly 2,500 SK Hynix workers have registered with the new union after obtaining approval from the local government. SK Hynix itself employs around 35,000 workers in South Korea.
Unlike the old unions, which were fragmented by job type or factory location, the new union represents all SK Hynix employees, from factory workers in Icheon and Cheongju to technical and office staff.
Their short-term target is ambitious: to recruit more than 50% of the company’s total workforce so the union can legally become the majority union and take full control of negotiations with management.
Tensions with management began with plans to change the company’s internal bonus scheme. Last year, SK Hynix allocated 10% of total operating profit as cash bonuses for employees, based on a 10-year agreement. However, for this year, management initially proposed that most of the bonus be shifted to shares.
The bonus issue also attracted the attention of investors. They questioned the allocation of 10% of profit for bonuses, fearing it could erode the company’s capital expenditure (capex) allocation while reducing returns for shareholders.
Meanwhile, its main rival, Samsung Electronics, has also reached a similar agreement with its labour union regarding performance bonuses. Samsung agreed to allocate 10.5% of the semiconductor division’s operating profit as worker bonuses in the form of shares, accompanied by lock-up period rules for most of those shares.