Workers at South Korean memory chipmaker SK hynix are stepping up collective action over wages and employee compensation as the company benefits from strong demand for high-bandwidth memory (HBM) used in artificial intelligence systems.
On 13 August, Reuters published that around 2,500 workers launched a new unified union bringing together factory, technical and office employees. The union aims to represent more than half of SK Hynix’s approximately 35,000 South Korean employees, which would strengthen its position in collective bargaining.
The dispute intensified after workers rejected a tentative wage agreement on 25 August. Of the 15,045 members who voted, 50.08% opposed the proposal, a margin of only 25 votes. The proposed agreement included a 6.3% wage increase and a revised bonus system, with 40% paid in cash and 60% in company shares.
Workers have raised concerns about receiving more compensation in shares because of stock-price volatility. The dispute highlights growing tensions over how record profits generated by the semiconductor and AI boom are shared with workers, while unions seek stronger bargaining power and greater influence over pay and working conditions.
Based on reporting by Reuters.
