SEOUL, Aug. 13—Workers at SK Hynix launched a new labor union in South Korea on Thursday, aiming to unite employees across job categories and locations to strengthen their collective bargaining position with the memory chipmaker.
The union's formation comes as SK Hynix and its existing labor groups are engaged in annual wage discussions. The company recently reported record quarterly profits, driven by strong global demand for artificial intelligence infrastructure components.
Nearly 2,500 SK Hynix workers have joined since the union received formal government approval, according to its website. SK Hynix employs approximately 35,000 people in South Korea.
Unlike the company's existing unions, which are organized by specific job categories or workplaces, the new organization seeks broader representation. It includes factory workers in Icheon and Cheongju, as well as technical and office staff.
Its immediate objective is to achieve majority union status by enrolling more than half of the company's workforce, which would give it significant influence in future negotiations with management.
A key point of contention in current wage talks involves employee bonuses. Last year, SK Hynix and its unions agreed to a 10-year deal allocating 10 percent of annual operating profit to employees as cash bonuses.
This year, SK Hynix proposed paying most workers' bonuses in company shares rather than cash—a move that follows a similar agreement reached earlier this year between Samsung Electronics and its unionized workers.
In May, Samsung Electronics formalized a performance pay deal, averting a potential strike. Samsung agreed to allocate 10.5 percent of its annual semiconductor operating profit to special bonuses for chip workers, paid in company stock with restrictions on immediate sale.
Park Ji-soon, a social security law professor at Korea University's School of Law, said the new union's launch could intensify competition among labor groups for membership. Attaining majority status is crucial for controlling collective bargaining, he said.
Park also said a shift toward stock-based bonuses could push unions to seek alternative benefits, such as housing loans comparable to those offered by Samsung Electronics.
Kim Yong-jin, a management professor at Sogang University, said workers' concerns about stock compensation are understandable given the volatility of Korean stocks, though equity-based bonuses are common practice in the United States.
Some investors have also questioned the policy of allocating 10 percent of operating profit to employees, expressing concern that it could reduce funds available for investment or shareholder returns.
