Samsung slashes 2020 pay raises as uncertainty grows
Samsung's domestic employees can expect more modest pay raises in 2020 as uncertainties surrounding the company's business continue to grow. The management already negotiated the move with union reps, The Korea Herald reports, citing insiders close to the tech giant.
This year's standard raise rate will hence amount to 2.5%, down one percentage point annually. Samsung already froze raises last year when it sanctioned an increase of 3.5% for the second time in a row.
Samsung still plans to reward top performers
Of course, the aforementioned figure is merely a starting point and individual performance reviews will continue to affect raises (or lack thereof) on a case-by-case basis, sources claim. As is usually the case with any company-wide negative trend at Samsung, the newly reported move is primarily a reflection of the market's current unpredictability.
For example, the conglomerate is still working on slowing down the spread of COVID-19 by suspending various operations all over the world. The full effects of those efforts likely won't be felt until much later in the year. In the meantime, Samsung Electronics is blaming the Galaxy S20 series' slow start on the ongoing pandemic.
The situation's not much better over at LG as Samsung's domestic and international rival reportedly also slashed raises from 4.3% to 3.8% following an agreement with unions. Samsung staffers can at least take some solace in the fact that their annual raises will likely return to more notable growth as soon as global markets stabilize. After all, the Seul-based company has a decent track record with sharing its successes with employees – especially in the consumer electronics segment.
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