SK Hynix Employees Launch Unified Union Over Bonus Dispute

SK Hynix employees launched a new unified labor union on Thursday to increase bargaining power following a dispute over annual wage talks. Nearly 2,500 workers joined the organization, which seeks to become the majority representative for the company's 35,000 South Korean staff to secure control over collective bargaining and negotiate for benefits such as housing loans.

The conflict stems from a disagreement over how to distribute record quarterly profits driven by AI infrastructure demand. While a previous agreement allocated 10 percent of annual operating profit to cash bonuses, the company proposed paying the majority of this year's bonuses in shares. This proposal mirrored a recent agreement at Samsung Electronics.

The new union aims to unify workers across different job categories and locations to better challenge the company's shift away from cash payments.