Beginning in the game industry, a’salary increase’ marches across the IT industry
Labor-management agreement to raise LG Electronics 9% and LG Display 6.5~7%
[서울=뉴스핌] Reporter Kim Sun-yeop = LG Electronics and LG Display decided to raise wages at a high level thanks to their good performance last year.
The craze for’salary increase’ that started in the game industry is spreading throughout the information technology (IT) industry. LG Electronics subsidiaries, which succeeded in rebounding last year due to the novel coronavirus infection (Corona 19), also began to cultivate employees by raising wages.
According to the labor union of LG Electronics and LG Electronics on the 19th, the two sides agreed on an increase in wages and welfare improvement this year.
The wage increase rate was confirmed at 9%, the highest since 9% in 2011. The highest rate of increase since 2000 was also 9% in 2011 and this year.
 |
| LG Twin Tower [사진=LG] |
Considering that the increase rate for the last three years since 2018 has been around 4% annually, this year’s increase is more than doubled compared to the previous year.
LG Electronics and the labor union announced that they applied an increase rate according to last year’s performance grade for each individual, while raising the starting salary for each position in order to increase employee morale and strengthen wage competitiveness. It was guided to employees through briefing sessions by organization.
The new initial wages of employee, seniority, and responsibility were 46 million won, 55 million won, and 71 million won, respectively, which are 3 million won, 5 million won, and 6 million won higher than before. The increased wages are applied from the March salary.
Along with the wage increase plan, a plan to improve welfare benefits was also introduced. Starting this year, employees with children entering elementary, middle and high schools will receive a laptop once per child. If the employee’s spouse does not undergo a health checkup, the employee or one of the spouse’s immediate family members may receive a health checkup.
LG Display’s labor and management, which succeeded in turning profits last year, also agreed to raise wages at a’record level’. Labor and management decided to increase the average of 6.5 to 7% of wages based on skilled workers through collective bargaining for wages. Compared to the 1.9% wage increase last year, this is a high level.
LG Display recorded losses for six consecutive quarters from the first quarter of 2019 due to deteriorating liquid crystal display (LCD) profitability. However, last year, due to the increase in demand for IT devices caused by Corona 19, it succeeded in turning into a surplus. LG Display’s annual deficit last year was 29.16 billion won.