SK Hynix workers launch unified union due to stalled wages

SK Hynix workers launched a fourth labor union on Wednesday, merging production and office staff from multiple worker regions into a single body that will speak for a majority of the chipmaker’s about 35,000 employees.

The union aims to work towards rescinding a proposed plan to pay workers’ bonuses in restricted company stock instead of cash.

One union across Icheon, Cheongju and Bundang

The new “Hynix Integrated labor union” allows membership regardless of if an employee works at Icheon, Cheongju or Bundang, and there are no restrictions related to office or fab workers. It already counts about 2,400 members, enough to overtake the company’s existing technical and administrative union.

Before the formation of this integrated union, SK Hynix negotiated with three separate groups which included full-time employee unions at Icheon and Cheongju tied to the Federation of Korean Trade Unions, and a technical and administrative union under the Korean Confederation of Trade Unions.

Each union previously bargained individually, and were split by factors such as job type and location. Putting all these workers from these unions into one body will combine their standalone demands into a singular voice.

Stock or cash for worker bonuses

SK Hynix had proposed paying some or all of its excess profit-sharing as bonuses paid in company stock, with a lock-up period barring sales for a set period of time. This proposal drew a heavy pushback from workers, and led directly to the workers’ drive to organize even better. The workers also complained that management disclosed too little about negotiations, and this added to the anger.

The newly formed integrated union’s top priority is keeping the worker bonuses and profit-sharing in cash. The stakes are significant, especially at a company that logged a record 60.54 trillion won ($41.2 billion) operating profit in the second quarter, according to KED Global.

SK Hynix union pushes for majority status

The union is targeting a headcount of 18,000 members, which would be more than half of SK Hynix’s workforce. This would make the union the legally recognized representative in talks with the company, giving it an actual voice in labor-management talks.

The journey to this majority status might require changing how the union runs. Proposed changes include putting negotiation agendas to a vote of all members instead of a few delegates, publishing meeting minutes, and bringing in external auditors. The union will stay independent, and will not be affiliated with either the KCTU or the FKTU.

It remains to be seen if the union can join this year’s wage talks, and worker bonus conversations remain unsettled. The union would sit in as an observer and press for transparency if it can’t attain the capacity to bargain directly, carrying its members’ views into the negotiation room.

The union is also weighing bringing in external allies. Yonhap reported the integrated union was considering partnering with the largest labor union at Samsung Electronics, while KED Global also claimed the group will explore working with Samsung employees on shared labor issues. This comes just after Samsung’s biggest union lost its majority status due to a bonus dispute that pushed non-memory workers out.

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