LG Electronics decided to raise wages for employees by 9%, including production workers this year. It is the highest rate of increase in the last 10 years. The starting wage for each position was also decided to increase by up to 6 million won. It is interpreted that the wage system reorganization and demands for performance compensation that were raised simultaneously by major companies were taken into account, and that the rate was raised to an unprecedented level compared to the previous year.
LG Electronics and LG Electronics Labor Union announced on the 18th that they have agreed on this year’s wage increase and welfare improvement plans. LG Electronics’ wage increase rate is the highest since 2011 (9%). The highest rate of increase since 2000 was also 9% in 2011 and this year.
Considering that the increase rate for the last three years since 2018 has been around 4% annually, it is more than double compared to the previous year. Last year, the rate of wage increase was 3.8%. A company official said, “We comprehensively considered the fact that major companies are changing the wage system in advance.”
LG Electronics and the labor union explained that they applied the increase rate according to the performance grade last year and also increased the starting salary for each position. The new initial wages for employees, seniority, and responsibility are 46 million won, 55 million won, and 71 million won, respectively. It has increased by 3 million won, 5 million won and 6 million won respectively from the previous year. The new wage table applies from March salary.
LG Display also decided to increase the average of 6.5-7.0% of wages based on skilled workers through a collective agreement on the day. This is also the highest level since the early 2010s.
An official from the economy said, “The demand for wage hikes and performance compensation in the information technology (IT) industry is affecting manufacturing sites as well.
Reporter Song Hyung-seok [email protected]
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