TREE NEWS update: SK Hynix and its union ratified a revised wage and collective bargaining agreement, with about 57% of union members voting in favor, the company said Wednesday. Profit-sharing bonuses will be paid 50% in cash and 50% in company stock, replacing an earlier proposal of 40% cash and 60% stock. The deal ends a labor dispute that threatened production at the world’s second-largest memory chipmaker.
SK Hynix, Union Agree to Raise Cash Share of Profit Bonuses to 50%
The shift toward a larger cash component signals that labour at a critical memory supplier now has real leverage over how AI-driven windfalls are distributed, not just how much. That matters for the broader chip supply chain, where any production disruption at a top-two memory maker would ripple into pricing and availability. The open question is whether this cash-vs-equity split becomes a template for other chipmakers' union negotiations, and whether the ratified deal genuinely removes the production risk or merely defers it.
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