SK Hynix shares fell about 5.6% after the labor union rejected the proposed wage agreement in a very close vote.
Workers rejected the deal by 50.08% versus 49.92%, with a margin of only 25 votes. The main point of contention was the proposal to pay 60% of incentives in the form of stock rather than cash, despite a 6.3% increase in base wages.
Reopening negotiations could increase uncertainty about labor costs and production stability, especially given SK Hynix’s importance in the HBM memory chip market used in artificial intelligence.
#SKHynixFalls5.63%AfterUnionRejectsWageDeal
Workers rejected the deal by 50.08% versus 49.92%, with a margin of only 25 votes. The main point of contention was the proposal to pay 60% of incentives in the form of stock rather than cash, despite a 6.3% increase in base wages.
Reopening negotiations could increase uncertainty about labor costs and production stability, especially given SK Hynix’s importance in the HBM memory chip market used in artificial intelligence.
#SKHynixFalls5.63%AfterUnionRejectsWageDeal
