It is an analysis that Samsung Electronics’ maximum wage increase in 10 years has nothing to do with the recent industrial atmosphere where the voices of employees demanding improved treatment have risen significantly.
The recent atmosphere sparked by the controversy over SK Hynix’s incentives is spreading through news that the information technology (IT) industry guaranteed a billion-dollar annual salary and started hiring developers.
At the beginning of this year, SK Hynix suffered from a controversy over performance pay. It was pointed out that 20% of the annual salary was paid to employees as excess profit distribution, which was similar to 2019 when the performance was sluggish. The controversy over performance pay, which seemed to be ended after twists and turns, led to a’competition for developers’ in the IT industry.
Not only IT companies such as Coupang and Toss, but also LG Group, a conglomerate, offered billions of annual salaries and started hiring developers. In particular, news that Samsung Electronics moved to Coupang with a guarantee of 1.5 times the existing annual salary of the development executive.
Accordingly, Samsung Electronics agreed to the highest annual salary increase in the last 10 years and began to maintain the wage gap that exceeded the treatment of the same industry. This is in accordance with Samsung Electronics’ principle of providing the industry’s best treatment, unprecedented compensation, and welfare system to outstanding talents.
However, during the wage negotiation process this year, Samsung Electronics suffered unprecedented pain. This year, amid an atmosphere of improved treatment, demand for a wage increase has increased, and the agreement on wage negotiations has been delayed several times. The employee council, which is an autonomous labor-management organization, requested a basic increase rate of 6%, but the management did not reduce the difference in eye level by suggesting a 3% increase. In addition, the nationwide Samsung Electronics Labor Union under the Korean Federation of Trade Unions requested a 10% wage increase. Also, as LG Electronics recently confirmed the wage increase rate of 9% this year, the same industry’s annual salary increase was confirmed, and the voice grew even more.
In the end, the labor and management could not reach an agreement until the 21st, which was the payday, and in this process, the Samsung Electronics Employees Council, an autonomous labor-management organization, unusually notified employees of the progress of the negotiations. In the end, Samsung Electronics managed to reach an agreement on the wage increase rate through 11 consultations, but in the process, the number of union members also surged. It is reported that the number of union members of Samsung Electronics, which was launched in 2019, has increased from 1,500 in December last year to the level of 2,500 currently.
Meanwhile, in addition to the wage increase rate, Samsung Electronics agreed on vacation and in-house welfare. The previous three days of infertility leave was increased to five days, and the system was changed to strengthen long-term leave and allow individual employees to manage their severance pay.
Since 2018, Samsung Electronics has provided paid leave for three days a year when a couple of employees want infertility treatment, but from this year, it is decided to implement the five days, an increase of two days. In the case of long-term leave, 3 days were given for 10 years of work and 5 days each for 20, 30, and 40 years, but from now on, 4 days are provided for 10 years and 20, 30, and 40 years. It was decided to give each of them eight days of paid leave. As Samsung Electronics’ wage increase rate is confirmed, the wage increase rate of Samsung affiliates such as Samsung Display, Samsung SDI, and Samsung Electro-Mechanics, which are Samsung affiliates, is expected to be confirmed sooner or later.
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