Samsung Electronics to freeze wages for this year

SEOUL, Feb. 27 (Yonhap) -- South Korea's top electronics maker Samsung
Electronics Co. plans to freeze wages for its employees this year as part of
efforts to overcome deepening economic woes in the wake of the global financial
crisis, company officials said Friday.

Management and employee representatives agreed Friday that wages for this year
will be frozen at current levels.
"In order to survive this worst economic crisis and improve our competitiveness,
all the employees of Samsung Electronics decided to put our trust with the
management and to join in the efforts to get over the current situation," said
Shin Kwang-ho, a representative of the company employees.
Profit sharing, which normally averaged 50 percent of annual salaries, will be
reduced to the maximum of 30 percent, with productive incentives reduced to the
maximum 200 percent from 300 percent.
The company said, however, that welfare funds and facilities would be maintained
at the current level in order to maintain workers' high motivation levels.
The move comes as the nation is gripped by fallout from the ongoing global
financial turmoil.
In January, Samsung Electronics said it will cut annual salaries for management
by 10 to 20 percent, with officials above the position of managing director
agreeing to return all their profit sharing.
Earlier this week, Samsung Group, the nation's largest conglomerate with Samsung
Electronics under its wing, said its affiliates will slash starting salaries for
newly hired graduates this year by 10 to 15 percent.
Annual wages for new hires are expected to be reduced by an average seven
percent, to 26 million won (US$17,184) from the current 28 million won, according
to local news reports.
ygkim@yna.co.kr
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