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Samsung Electronics, a representative company in Korea(81,500 +0.37%)And LG Electronics(143,000 -3.38%)Has agreed to increase the average wage of employees this year to the maximum in 10 and 9 years, respectively. Considering the external management uncertainty of Corona 19, it is an evaluation that is an unusual impression. The dominant view of the business community is that it was compelled to take into account the wave of annual salary hikes that are continuing in the IT industry.
However, voices of dissatisfaction also come out from within Samsung and LG companies. It is argued that the report card was the highest in history after breaking through Corona 19 last year, but compared to that, the extent of the impression did not meet expectations. There are also movements in the labor unions (union) of each company to cancel the wage increase this year and to renegotiate.
Samsung Electronics concluded 11 wage negotiations with the labor-management council, the representative of its employees, and agreed on an average wage increase rate of 7.5%, including the base-up (basic wage increase rate) 4.5% and the performance increase rate (differential payments depending on performance) 3% this year. Announced. This wage increase is related to the basic annual salary paid monthly, and is separate from the’bonus’ paid annually.
Samsung Electronics’ such increase is the highest in the last 10 years. Even considering the rate of increase in the basic wage alone, it nearly doubled compared to the previous year (2.5%). Samsung Electronics’ basic wage increase rate was △5.5% in 2013 △1.9% in 2014 △Freeze in 2015 △2% in 2016, △2.9% in 2017 △3.5% in 2018 △3.5% in 2019 △2.5% last year.
Along with this, Samsung Electronics has also improved various welfare programs, such as raising the welfare point from 700,000 won last year to 1 million won this year, and extending the period of infertility leave and long-term leave. According to this increase, the wages of CL1~2 employees at the employee deputy level are expected to increase by 11% on average. In addition, the initial salary for college graduates, which was in the mid- to low-45 million won range last year, was also raised to 48 million won.
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LG Electronics also announced last week that it had agreed with LG Electronics’ labor union,’labor-management’, that this year’s wage increase rate was at a record high of 9%. This increase is the highest in nine years following 2011. Considering that the increase rate for the last three years since 2018 has been around 4% per year on average, it has more than doubled compared to the previous year.
LG Electronics also raised the starting salary for each college graduate level. The new initial wages of LG Electronics’ employees, appointments, and responsibilities are 46 million won, 55 million won, and 71 million won, respectively. It is 3 million won, 5 million won, and 6 million won respectively higher than before.
Both companies responded that they are generally “satisfied” when the wage increase this year has risen much more than the previous year. An official from the HR department of a large company that is currently undergoing final negotiations said, “Samsung and LG have increased their wages more than expected, so they are compelled to refer to (these companies).” Burden”.
However, some of the company’s voices are dissatisfied with some of the unions. Although each company has a different wage regime, the purpose of these arguments is similar. Considering that the agreed-upon wage increase rate this year △ fell short of what the union originally suggested, and △ there are parts that are paid differently according to performance grade, it is explained that the wage increase of 7.5% and 9% for all employees is not achieved.
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In fact, the nation’s Samsung Electronics Labor Union (Jeon Samno), the largest among Samsung Electronics unions, is insisting on renegotiation of wage negotiations this year. It is known that the newly established LG Electronics people-centered office worker union, which was newly established earlier this month, has entered into a procedure for a separate executive negotiation for office workers.
An employee of Samsung Electronics, who is affiliated with Jeon Samno, said, “The company set half of last year’s operating profit as a dividend to shareholders, and doubled the wages for some executives,” he said. In particular, Jeon Sam-no, ahead of formal wage negotiations, is demanding only a 10% increase in basic wages.
On the other hand, the management explained that even though the external environment is still uncertain this year due to Corona 19, etc., it has improved the treatment of employees through close discussions between labor and management.
Samsung Electronics announced this year’s wage increase rate through an in-house announcement, saying, “It was adjusted so that wage competitiveness could be maintained 1.2 to 1.4 times higher than that of major companies.” LG Electronics also said, “To increase employee morale and strengthen wage competitiveness. “It’s for the sake of”.
Last year, Samsung Electronics ranked first in the average annual salary of large domestic companies. According to the Samsung Electronics Business Report, the average annual salary of 109490 Samsung Electronics domestic employees last year was 127 million won. This is a 17.6% increase from the previous year’s 180 million won. At the beginning of this year, Samsung Electronics also paid its employees, such as excess profit incentives (OPI), up to 50% of their annual salary.
Seongsu Bae, reporter of Hankyung.com [email protected]