A number of employees from LG Energy Solution have launched a protest demanding improvements to the bonus system following the company’s decision to significantly reduce this year’s bonuses. (Image courtesy of LG Energy Solution protesters)
SEOUL, Feb. 6 (Korea Bizwire) – A number of employees from LG Energy Solution have launched a protest demanding improvements to the bonus system following the company’s decision to significantly reduce this year’s bonuses due to a slowdown in demand for electric vehicles.
From February 5 to 29, approximately 1,700 LG Energy Solution employees, through anonymous fundraising, will conduct solo protests using a 3.5-ton truck and speakers around Yeouido, Seoul, where the company’s headquarters, Parc.1, is located.
The truck will circulate the area from 8 a.m. to 4 p.m. daily, displaying messages on its digital billboard such as “Set clear management goals, reward fairly” and “Disclose a performance system that matches our sweat and blood.”
A number of employees from LG Energy Solution have launched a protest demanding improvements to the bonus system following the company’s decision to significantly reduce this year’s bonuses. (Image courtesy of LG Energy Solution protesters)
Despite achieving record sales last year, LG Energy Solution decided not to include the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) in its performance indicators due to its volatility.
The organizers criticized the company for not providing fair compensation to employees who worked on IRA-related tasks and for adopting a double standard by excluding IRA-related profits from bonus calculations while categorizing them as earnings in the financial statements, thereby reducing costs.
They also highlighted the company’s unilateral communication without proper explanation or consent regarding these decisions. The protesters are demanding the inclusion of financial statement earnings, including IRA, in bonus calculations and the introduction of a profit-sharing scheme where a certain portion of the profits is allocated for bonuses based on financial performance rather than target achievement.
A number of employees from LG Energy Solution have launched a protest demanding improvements to the bonus system following the company’s decision to significantly reduce this year’s bonuses. (Image courtesy of LG Energy Solution protesters)
LG Energy Solution set this year’s bonuses at 340-380% of the base salary, averaging 362%, a significant drop from last year’s 870%, with the possibility of reaching up to 900% based on performance.
In response to the controversy over bonuses among employees, LG Energy Solution President Kim Dong-myung announced during a town hall meeting on February 2 that the company would develop an improved bonus plan.
Kevin Lee (kevinlee@koreabizwire.com)
