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SK Hynix's Korean workers launch unified union amid stalled wage talks
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SK Hynix's Korean workers launch unified union amid stalled wage talks
Aug 13, 2026 4:54 AM

* Chipmaker's workers launch new union representing both

office and factory employees

* Nearly 2,500 SK Hynix ( SKHY ) workers have joined the new union

* New union aims to become a majority union and engage in

pay talks

* Wage talks with existing unions stalled over bonus scheme

By Heekyong Yang and Hyunjoo Jin

SEOUL, Aug 13 (Reuters) - Workers at SK Hynix ( SKHY ) on

Thursday launched a new labour union in South Korea, seeking to

bring together employees across different job categories and

locations as they pursue greater bargaining power at the leading

memory chipmaker.

The launch comes as SK Hynix ( SKHY ) and its existing unions are

locking horns over annual wage talks, after the chipmaker posted

record quarterly profits on strong demand for AI infrastructure.

Nearly 2,500 SK Hynix ( SKHY ) workers have joined the new union,

according to its website. The union was formally launched after

the government approved an application. SK Hynix ( SKHY ) has nearly

35,000 employees in South Korea.

Unlike existing unions organised around particular job

categories or workplaces, the new union aims to represent

employees across SK Hynix's ( SKHY ) operations, including factory

workers in Icheon, Cheongju, as well as technical and office

staff.

Its immediate goal is to become a majority union by signing

up more than half of the company's workforce, which would give

it greater influence in negotiations with management.

CONTROL OVER COLLECTIVE BARGAINING

The chipmaker last year agreed with its union to allocate

10% of annual operating profit to employee bonuses in cash under

a deal that would remain in place for 10 years.

But SK Hynix ( SKHY ) this year proposed paying a majority of

workers' bonuses in shares rather than cash, after its peer

Samsung Electronics ( SSNLF ) agreed on similar terms earlier this year.

Park Ji-soon, a social security law professor at Korea

University's School of Law, said the launch could trigger

competition among unions for members, as becoming the majority

union is key to securing control over collective bargaining.

He said a shift towards stock-based bonuses could prompt

unions to seek other benefits such as housing loans comparable

with those at rival Samsung Electronics ( SSNLF ).

Kim Yong-jin, a management professor at Sogang University,

said while workers' concerns over stock compensation were

understandable, given the volatility of Korean stocks,

equity-based bonuses were common in the United States.

Investors have also questioned whether allocating 10% of

operating profit to employees reduces funds available for

investment or shareholder returns.

In May, Samsung Electronics ( SSNLF ) and its unionised workers agreed

on a deal on performance pay, averting a major strike at the

chip giant that had threatened to disrupt supplies.

Samsung agreed to allocate 10.5% of its annual semiconductor

operating profit to special bonuses for chip workers. The

bonuses would be paid in company stock, with the immediate sale

of over a majority of the shares to be restricted.

($1 = 1,417.7400 won)

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