9% in 2021, Down from Last Year's 8.2%
Last Year's Inflation Rate Slightly Exceeded 5.1%
Samsung Electronics in Turmoil Over Management's 1% Raise Proposal
LG Electronics has set this year's average wage increase rate at 6%.
LG Electronics and the LG Electronics Labor Union (Nokyung) reached an agreement on this year's wage increase rate and improvements in welfare benefits the day before, and informed employees through departmental briefings and the company bulletin board.
Nokyung agreed on a 6% wage increase rate for this year. This is slightly lower than 9% in 2021 and 8.2% in 2022. It is higher than last year's consumer price inflation rate of 5.1%, which serves as a benchmark for wage negotiations.
Starting salaries by rank will be increased by 2 million KRW. This is to strengthen wage competitiveness. Accordingly, this year's starting salary for new employees will be 51 million KRW. The starting salaries for senior and responsible positions are 60 million KRW and 75.5 million KRW, respectively.
The increase will be applied starting from this month's salary.
Additionally, LG Electronics has expanded support for some welfare programs, such as health checkups for unmarried employees aged 35 and older and their immediate family members.
Meanwhile, Samsung Electronics is facing some turmoil as the management proposed a basic wage increase rate of 1% for employees. The union is reported to have demanded around 10%.
Kyung Kye-hyun, head of the DS (Semiconductor) division and CEO, said in the company’s internal communication channel 'Witalk (Wednesday Talk)', "Although we raised the executive compensation cap by 17%, we will take seriously the fact that a basic wage increase rate in the 1% range was proposed in wage negotiations."
He also said, "Since wage negotiations are still ongoing, it is difficult to disclose details of the discussions between labor and management," but added, "I hope the negotiations can be completed by early next month."
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