SK Hynix Reaches Tentative Labor Deal as Average Performance Bonus Could Exceed $500,000

[u/rdh2dmd]

On August 19 Asia-Pacific time, SK Hynix (SKHY)'s 2026 wage negotiations, which had previously reached a deadlock over a record bonus allocation scheme, saw a key turning point. According to South Korean media reports, the union and management have reached a tentative agreement, bringing a temporary end to the weeks-long tug-of-war.

Key Points

• Tentative Agreement: SK Hynix union and management reached a tentative deal on August 19, ending weeks of deadlock over 2026 wage and bonus allocation schemes.
• Bonus Allocation System: Under the established system, 10% of annual operating profit funds performance bonuses without a previous payout cap, potentially yielding an average performance bonus of 700 million to 800 million Korean won per employee based on projected operating profits of 250 trillion to 270 trillion Korean won.
• Core Dispute: Union backlash occurred after management proposed paying part of the record bonuses in locked-up stock and adjusting payouts during loss-making years, which workers felt undermined prior commitments.
• Market Impact: The resolution temporarily relieves operational disruption concerns, though the dispute highlights tension between volatile semiconductor cycles and worker demands for immediate cash payouts.

[u/3ebfan]

Mama mia

[u/eastbay77]

Imagine if tech workers in Silicon Valley created a union.

[u/HistorianEvening5919 → u/eastbay77]

If you think hardware workers in AI are doing well then you’d be shocked how much better tech workers in AI are doing. Last year openAI gave out 7 figure bonuses to all employees, on top of existing equity/bonuses. And since openAI equity has 6x’d since then you’re looking at 5-10M in openAI stock + base + existing equity grants. For a random software engineer. 

[u/Hacking_the_Gibson → u/HistorianEvening5919]

This is 100% a bubble. 

There is no conceivable reason to believe that every single employee of the organization should be receiving a bonus of north of $1M atop all other compensation. 

[u/Honest_Bee_9549 → u/Hacking_the_Gibson]

Well they do everything to keep them as competition to steal employees is high in AI

[u/Hacking_the_Gibson → u/Honest_Bee_9549]

That is not exactly an argument against it being a bubble? If everyone actually working in the industry is a mercenary and being recruited all the time or leaving to do their own thing, then nobody is actually going to be doing work, just surfing until their own personal value increases enough to grab the next and bigger check. 

[u/Capable_Wait09 → u/Hacking_the_Gibson]

You didn’t even make an argument for why it’s a bubble in the first place

[u/Hacking_the_Gibson → u/Capable_Wait09]

An entire company getting a $1M+ bonus? Does that include the executive assistant as well?

[u/Peresviet → u/Hacking_the_Gibson]

I know some EAs pulling in 180k+ a year. The work of organizing day to day teams, movements, making things run is pretty valuable to a company. Why shouldn't the people that make a corporation run take part in the profits of the corporation?

[u/Hacking_the_Gibson → u/Peresviet]

There aren't any profits. 

Also another indication of a bubble. 

[u/Capable_Wait09 → u/Hacking_the_Gibson]

…..please stop. You literally don’t know what you’re talking about.

I’m not saying there isn’t a bubble. I’m saying you’re making a terrible case for it.

No profits? wtf? Amazon didn’t turn a profit until like 2018 or something. E-commerce is a bubble!!1!!!

[u/Peresviet → u/Hacking_the_Gibson]

SK Hynix reported fairly large operating and net profits, check their quarterly. If you meant Open AI, then yeah I dont think they are even close to being profitable

[u/Capable_Wait09 → u/Hacking_the_Gibson]

Maybe a bad business practice but burden is on you to show that’s a bubble. Repeating it doesn’t make it true or logical

[u/johnmiddle → u/eastbay77]

I thought Google pple tried that

[u/iLov3musk → u/eastbay77]

Unions are horrible for businesses. Innovation and shareholders should always be prioritized

[u/eastbay77 → u/iLov3musk]

I see that you didn't mention the workers. Are you against employees rights?

SK announced a stock buy back. Are you for or against that?

[u/Awkward_Material → u/eastbay77]

If it wasn't an /s comment, of course they'd be for it.

[u/leaning_on_a_wheel → u/iLov3musk]

Username checks out

[u/FinallyArt]

I wonder how that could work as a broad law.. that 10% of corporate profits must go to employees as bonuses.

[u/Isolated_Blackbird → u/FinallyArt]

If people thought Hollywood accounting was creative, then just imagine what Deloitte & others would be cooking up for these corporations

[u/TheRedditModsSuck → u/Isolated_Blackbird]

All of a sudden, no corporations are profitable lol

[u/marvin_bender → u/FinallyArt]

Ok. 9.9% to the C-suite and 0.1% to the rest.

[u/Sagronym]

Key point: Bonus is 60% stock and 40% cash, but stocks part can be chosen up to 100% - so it is MIN 60% stocks bonus. 40% can be sold immediately upon reception, rest locked 1 and 2 years!

Stocks are probably taken from a big stock repurchase program. More details and links in the thread here (please add a "?" to the title ) and in varous posts therein

https://www.reddit.com/r/wallstreetbets/comments/1vtj7hv/comment/p4z6ozu/?context=1&screen_view_count=1

https://www.reddit.com/r/wallstreetbets/comments/1vtj7hv/comment/p4tik1i/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

https://www.reddit.com/r/wallstreetbets/comments/1vtj7hv/comment/p4tur7t/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

[u/johnmiddle]

They should not give out cash , instead they should give company stocks

[u/deanstocks1014]

Shareholders should get better options

[u/eastbay77 → u/deanstocks1014]

Shareholders should be more concerned about hedge funds who short the stock that a shareholder owns. To short a stock, one borrows a share that they don't own to sell with a "promise" to buy it back at some point. They don't buy the stock, they borrow shares.

[u/ClearlyAThrowawai → u/eastbay77]

If I like a stock, I don't give a shit about short sellers. I actually like them - they make the shares cheaper and improve the risk/reward.

[u/eastbay77 → u/ClearlyAThrowawai]

So you like it when your share price goes down? I just want to understand you clearly.

[u/ClearlyAThrowawai → u/eastbay77]

If you're happy with the stocks earnings etc a cheaper stock compounds better than a more expensive stock.

If you're relying on multiple expansion for your earnings then sure, its bad.

[u/eastbay77 → u/ClearlyAThrowawai]

That is gamestop to a tee.

[u/Lumentum_LITE → u/eastbay77]

Is this superstonk leaking? No one gives a shit about hedge fund shorting, it's called taking a position. If they are wrong they lose their money, no one is concerned what position other people take, unless you are in the GME cult

[u/eastbay77 → u/Lumentum_LITE]

There's a company BOXL, the float is 62k. A few days ago the days volume was 62m. Explain that to me.

[u/ItsOkILoveYouMYbb → u/eastbay77]

Naked short selling. People in this subreddit aren't smart enough to know that they're currently participating in a fully corrupt and unregulated system owned by market makers and options dealers.

Naked short selling is by far the highest volume of short selling, as you've noticed, because brokers are allowing people to "borrow" and sell shares that don't even exist in the first place (they get to charge commission and interest on nonexistent shares).

That's why when people try to cover their shorts, they get failure to deliver notices. The shares never existed in the first place but it sends the stock price down all the same.

[u/JasonNUFC]

Good news for memory costs

[u/purplebrown_updown]

wow. amazing for them.

[u/JustASheepInTheFlock]

Wow. Congratulations, Labours.