This file photo, taken on June 11, 2020, shows an entrance to Samsung Electronics Co.’s plant in Suwon, south of Seoul. (Yonhap)
SEOUL, March 15 (Korea Bizwire) — As Samsung Electronics Co. is weathering a slump in the semiconductor industry, the company plans to raise wages at a lower rate than in previous years.
Industry sources said that the company proposed a base-up level of around 1 percent during its wage negotiations with the labor union.
A base-up level applies to all employees at the company. The actual raise is higher since it includes the base-up rate along with personal merit and performance.
Last year’s average pay raise was 9 percent, combining the base-up rate of 5 percent with a merit increase of 4 percent.
The company also proposed a 5-15 percent decrease in working hours for the wage peak system and allowing a special 15-day leave of absence for fathers following the birth of their children to be divided and used two separate times.
“Management is responsible for the Galaxy S22 game optimizing service fiasco and the chip stockpiles, but employees are being charged with the consequences,” the labor union said.
The labor union has set this year’s pay raise at 10 percent.
Kevin Lee (kevinlee@koreabizwire.com)
