LG Electronics’ 9% wage increase rate is’a record-breaking level’, but… Employees who are’bulky’

Input 2021.03.26 15:50

The previous 9% wage increase was made.
Some employees continue to complain… “Blanking agreement”
Management, wage briefing session and Q&A desk operation

LG Electronics (066570)Has decided to raise the wages of its employees by 9% this year. However, complaints from some employees still persist. This is because the 9% increase cannot be fully enjoyed as it is not a collective increase. Within LG Electronics, which is a multi-union system, some unions have already started working to abolish the wage increase this year. Separately, LG Electronics decided to open a window to notify employees of the wage increase plan and to solve their curiosity.

According to the electronics industry on the 26th, LG Electronics’ people-centered office worker union is in the process of negotiating separate office workers with the goal of May. The union was officially launched in March after receiving a certificate of approval in March after reporting its establishment in February.

There are three unions in LG Electronics: the LG Electronics union under the Korean Federation of Trade Unions, the LG Electronics service branch under the National Federation of Democratic Workers Unions, and the clerical union with no higher level organizations. The representative union for bargaining with the management is the LG Electronics union. According to the LG Electronics union, the number of members as of last year was 9595. In the case of the service branch, it is estimated to be around 1500.

It is estimated that the office worker union currently has more than 3,000 members, but the number of members is expected to continue to increase. This is because the number of subscribers in the union community is close to 8,000, and there are also a large number of office workers who have not joined the union. According to LG Electronics’ last year’s business report, as of the end of last year, the number of employees was about 40,000, and about 30,000 are estimated to be office workers.

The number of members of the LG Electronics union, the representative bargaining union, has risen in recent years, but compared to the past, it is at a level of half. According to the status of LG Electronics union members, the number of union members in 1988 reached 23,901.

In particular, the plan to raise wages fueled the complaints of employees caused by the issue of incentives this year, and is putting efforts on the office workers union. The clerical labor union is pointing out problems such as ▲ negotiations between labor-management, opaque performance pay standards, and the lowest-ranking salary table for large corporations.

Earlier, the union of LG Electronics and LG Electronics confirmed a 9% wage increase this year. This is the highest rate of increase since 2000, the same as in 2011. Considering that the increase rate has been around 4% for the three years since 2018, it has more than doubled.

However, the 9% wage increase rate consists of financial resources related to performance (3.5%) and financial resources for strengthening competitiveness (5.5%). Among them, in the case of performance-related resources, the rate of increase is determined according to the performance grade received last year. Accordingly, there is no structure in which all employees’ wages are increased by 9%. For example, if you receive S, the highest grade in the personnel evaluation, a 6-8% increase rate is applied, but D, the lowest grade, remains in place. It is known that the fluctuation is greater among responsible employees than among low-year employees. Some employees argued that “the management is wrapping up the maximum 9% increase as if it were a bulk increase.”

LG Electronics is holding a briefing session on the wage increase plan for each business division, such as battlefield (VS) and household appliances (H&A). From next week, a salary-related Q&A desk will also be operated for employees.