 |
Photo courtesy of LIG Nex1 |
[Alpha Biz= Kim Jisun] Negotiations between management and labor at LIG Nex1 have broken down due to unresolved differences over the comprehensive wage system and salary and performance bonus adjustments.
On December 17, LIG Nex1 and its main labor union, the LIG Nex1 Branch, held the 16th formal negotiation session but failed to reach an agreement. Following the breakdown, the union submitted a mediation request to the Central Labor Relations Commission.
The union stated that it strongly demanded the unconditional abolition of the comprehensive wage system, citing measures highlighted by the Ministry of Employment and Labor to prevent such systems. However, management insisted on a gradual reduction of the system and refused to increase wages or performance bonuses, effectively closing the door to further dialogue. The union emphasized that it will take legal and organizational action in line with its members’ opinions.
Industry peers have already moved away from the comprehensive wage system: Korea Aerospace Industries (KAI) abolished it in 2020, Hanwha Aerospace in 2024, and Hanwha Systems is conducting a phased reduction aiming for full abolition by 2028.
In response, LIG Nex1 management proposed a phased reduction of fixed overtime (OT) hours until 2028. The union, however, insists on unconditional abolition of the comprehensive wage system by that year. Previously, the union opposed management’s plan to implement a PC-based attendance tracking system.
LIG Nex1 argued that fixed OT is not part of the comprehensive wage system and confirmed that the PC-based attendance system will not be introduced until next year. Management stated that it had actively negotiated, proposing to reduce fixed OT by 8 hours per year over two years, with the remaining 8 hours to be discussed in 2027.
The union expressed concern that discussions in 2027 could lead to reconsideration of the PC-based attendance system. The union noted that competitors such as Hanwha Aerospace and KAI track labor hours using employee ID card entry records, not PC usage, and warned against reintroducing the previously withdrawn “seat attendance management system” under a different name.
Negotiations on salary adjustments also reached an impasse. LIG Nex1 proposed a 6.2% increase in base pay. The company reported record-high sales last year and strong performance this year. The union criticized the management for lowering the proposed base salary increase from 7.2% last year to 7%, and now to 6.2%, despite record profits.
The union further stated that the company’s refusal to finalize retirement lump-sum payments within the year shows disregard for the employees who contributed to the company’s success.
LIG Nex1 responded that it had proposed a 6.2% base pay increase, a KRW 5 million lump-sum payment, and performance bonuses funded at 12% of operating profit. The company added that its proposed pay increases are not low compared to industry peers.
The company reaffirmed its commitment to continue negotiations in good faith.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
