SK Hynix to Apply 4.5% Wage Increase if Profitability Achieved

"Quarterly Operating Profit Must Turn Positive to Implement... If Not This Year, Then Next Year"
"Agreement Reached After One Month of Negotiations... A Precedent Reflecting Business Conditions"

SK Hynix has decided to set the wage increase rate at a total of 4.5%, but to implement it at the point when quarterly operating profit turns positive.

On the 27th, SK Hynix labor and management agreed on a 4.5% increase rate through wage negotiations. However, they tentatively agreed to implement it when quarterly operating profit turns positive and to retroactively pay the wage increase from January 2023 at the time of implementation.

If the company fails to turn a profit in the 2nd, 3rd, and 4th quarters this year but succeeds next year, the wage increase will be applied retroactively at the time of profit turnaround next year. SK Hynix recorded an operating loss of 3.4023 trillion KRW in the first quarter.

SK Hynix Headquarters, Icheon-si, Gyeonggi-do. [Image source=Yonhap News]

The company stated that labor and management succeeded in negotiations in less than a month since they started talks. The speed of negotiations accelerated thanks to mutual understanding that the company's performance worsened due to the global economic downturn. They also self-assessed that labor and management derived a "win-win" solution. Additionally, they said they plan to continue discussions with the Technical Office Workers' Union regarding related matters.

An SK Hynix official said, "A strong culture of coexistence and trust is SK Hynix's unique competitive advantage and a driving force to overcome crises," adding, "The company will make further efforts for the growth and pride of its members."

This content was produced with the assistance of AI translation services.