LS Group announced on Sept. 13 that it would implement the wage peak system in all its units from 2016 in a bid to guarantee job security for a longer period of time for individual workers, create more jobs for the younger generation, and be part of the government’s labor reform plan.
LS Cable & System, the major subsidiary of the LS Group, adopted the wage peak system from 2007 based on the cooperative relations between management and labor. Also, six out of nine subsidiaries with more than 300 employees, or 67 percent, have been implementing the system. Including its subsidiaries with less than 300 workers, about 25 percent of the group are introducing the wage peak system. In particular, the group has extended the retirement age to 60 and adopted the wage peak system in 2007 for the first time in the domestic wire industry, attracting public attention.
Considering the nature of the industry, in which there are many older workers with 22 years of service, labor and management have concluded the final agreement through mutual concessions and negotiations.
The LS Group plans to discuss the details of the management plan by subsidiary in the future, such as wage adjustment age and plans, and retirement age extension plans.
Even though the industry does not have a structure that takes a lot of manpower, the group has decided to actively cooperate with the government’s labor reform plan and create more jobs for young people. Accordingly, it will increase the size of employment by 10 percent every year from next year, and hire 2,300 new workers by 2017.