Discussions to establish an integrated labor union encompassing both production workers and engineering-office employees at SK Hynix are rapidly gaining momentum.

The interim chairman announced through a notice on the 8th that the union establishment application had been submitted. He forecasted that an official launch could take place as early as next week. A recently opened preparatory group drew more than 3,500 participants — roughly 10% of the company's total workforce of 35,000 — in just three days, with members continuing to express their intention to leave existing unions and join the new one.

■ Triggered by Performance Bonus System Overhaul

At the core of the integrated union movement is opposition to the performance bonus system. Last year, SK Hynix's labor and management agreed to abolish the cap on the Profit Sharing (PS) system — funded by 10% of operating profit — and to maintain this framework for 10 years. The key terms stipulated that 80% would be paid in cash and 20% would be deferred over a two-year period.

However, backlash grew during this year's negotiations when the company proposed paying a portion of bonuses in company stock with restrictions on selling for a certain period. Dissatisfaction mounted over the fact that actual compensation could fluctuate depending on share price movements, as well as over the very act of reopening a bonus framework that had been hard-won through negotiation. Furthermore, when wage adjustment measures in the event of losses were mentioned, concerns about potential wage cuts also surfaced.

■ Goals and Expectations of the Integrated Union

Currently, SK Hynix operates under a multiple-union system in which the engineering-office workers' union affiliated with the Korean Confederation of Trade Unions and the production workers' unions at the Icheon and Cheongju plants affiliated with the Federation of Korean Trade Unions each conduct wage and collective bargaining negotiations separately. If the integrated union materializes, there are internal expectations that scattered negotiation channels could be consolidated into one, thereby increasing bargaining power.

The interim chairman put forward the full implementation of last year's agreed-upon bonus payment commitments as the top priority goal of the integrated union's launch. He stated that the objectives are to withdraw the company's proposed bonus negotiation plan and to completely separate the bonus issue from wage and collective bargaining, excluding it from negotiation for the next 10 years.

■ Growing Criticism of Existing Unions

Criticism of the existing unions is also spreading. As wage and collective bargaining negotiations continued through the fifth main session without significant progress, successive complaints have been raised that members' opinions are not being adequately reflected and that the sharing of negotiation details lacks transparency.

■ Government Policies and Samsung's Precedent Also Influential

The government's moves to revise the operating-profit-linked bonus system have also contributed to growing anxiety among employees. Minister of Trade, Industry and Energy Kim Jung-kwan stated his opposition to the operating-profit-linked bonus payment method at a forum on the 6th, noting that amendments to the Commercial Act and the Capital Markets Act are under discussion with relevant ministries. The Ministry of Employment and Labor also plans to release guidelines this month specifying the scope and subjects of labor-management negotiations, including performance bonuses.

Industry observers believe that Samsung Electronics' company-wide union case also influenced the SK Hynix integrated union discussions. Samsung Electronics' company-wide union grew its membership to approximately 76,000, secured majority union status, and demonstrated its negotiating clout by achieving results such as the establishment of a special semiconductor management performance bonus in this year's wage negotiations.