'Reflect our blood and sweat': LG Energy Solution employees stage angry protest

Industry

Published: 05 Feb. 2024, 15:44

'Reflect our blood and sweat': LG Energy Solution employees stage angry protest

A 3.5-ton truck from LG Energy Solution employees with an electronic display demanding a new ″incentive plan reflecting our blood and sweat,″ was driven around Yeouido, western Seoul, on Monday. [YONHAP]

Thousands of LG Energy Solution employees staged an anonymous protest Monday arguing they deserve more incentives reflecting the company's record-high profits.

A 3.5-ton truck with an electronic display showing phrases to demand a new "incentive plan reflecting our blood and sweat," was driven around Yeouido, western Seoul, on Monday. The truck was operated by anonymous fund-raising from around 1,700 LG Energy Solution employees, according to multiple local reports.

It comes as LG Energy Solution recently set this year's incentive as an average of 362 percent of an employee's base salary. That's more than halved from last year's 870 percent. It was 450 percent in 2022.

The announcement came despite LG Energy posting a record high of 2.2 trillion won ($1.7 billion) in operating profit last year, a 78.2 percent jump on year. Its revenues also hit a new high of 34 trillion won, up 32 percent on year.

"LG Energy Solution management should let go of their strong sense of authority," the electronic display read. "We demand joint growth between company and employees through a regain of trust and quantitative compensation."

The employees also argued that the company did not reflect tax credits it received under the U.S. Inflation Reduction Act (IRA) when calculating its incentive rates.

LG Energy Solution immediately issued a statement explaining their perspectives and pledging better communication with employees to meet their satisfaction.

"We don't reflect IRA tax credits in our result index considering its high variability and temporality," the statement read. "We feel very regretful about employees' repeated demand on compensation we have already vowed to improve."

"Yet the company will listen carefully to our staff and their opinion and meet it with well-matched treatment."

LG Energy Solution CEO Kim Dong-myung on Feb. 2 held a town hall meeting and vowed to come up with improved measures regarding incentives within the first quarter.

"I truly empathize with employees that the current incentive plans need to be improved," Kim said during the meeting. "We will try to increase compensation so that our employees can be better treated compared to rivals."

The protests are reported to continue until Feb. 29.

BY SARAH CHEA [chea.sarah@joongang.co.kr]