SK Hynix Stock Falls 5% After Union Rejects Wage Deal by 25 Votes
TLDR
- SK Hynix stock fell 4.9% on Tuesday after union members rejected a tentative wage agreement
- 50.08% of 15,045 workers voted against the deal, with the margin being just 25 votes
- The rejected deal included a 6.3% wage increase and a revised bonus scheme paying 40% cash and 60% in stock
- Workers opposed the shift toward stock-heavy bonuses due to concerns about share price volatility
- The broader KOSPI fell around 3% on Tuesday, with chip stocks also under pressure ahead of Nvidia earnings
SK Hynix stock dropped 4.9% to โฉ1,611,000 on Tuesday after its union members narrowly voted down a tentative wage agreement.
The result was close. Of the 15,045 workers who cast ballots, just 50.08% voted against the deal. The margin was 25 votes.
The rejected agreement, reached last week, included a 6.3% wage increase. It also revised the companyโs profit-sharing bonus structure to pay 40% in cash and 60% in company stock.
That bonus structure was the sticking point. Some workers pushed back against receiving more than half their bonuses in stock, citing concern about share price volatility.
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