LGD Nanjing Panel Factory resumes construction and denies discrimination between Chinese and Korean employees

LGD Nanjing Panel Factory stated that employees had "different understandings" of the year-end awards and denied that "discriminatory treatment" of the LG Display (hereinafter referred to as LGD) Xiamen joint venture company's employee dispute has just been resolved. The Nanjing factory also heard that "the 8,000 people's congress has gone on strike." "The news.

Yesterday, the reporter confirmed from LGD that the LGD factory in Nanjing had a strike in recent days. The incident was caused by the employees’ different understanding of the year-end award. However, LGD denied the core information of “8000 people involved” and “differential treatment of Chinese and Korean employees” from the Internet, and claimed that only “a small number of employees participated”, and the proportion of year-end bonuses for Chinese and Korean employees is the same. LGD also revealed that it had reached an agreement with the union yesterday afternoon that the factory had resumed its work and that its supply had not been affected for the time being.

In September, the mobile phone R&D department of the LG Electronics China R&D Center in Beijing conducted large-scale personnel adjustments.

In mid-December, LGD and Taiwan’s TPV’s joint venture in Xiamen proposed to cancel the TV production line and cause employee compensation disputes.

On December 27th, LGD confirmed that the factory in Nanjing had a strike, because employees had different understandings of the year-end awards.

On December 27, there was a large number of videos on the site of the LG Nanjing factory's strike, and there were media reports that a major strike broke out at the LG factory in Nanjing.

Some employees publicly disclosed that the strike was caused by year-end awards. First, the company treated the Korean employees and Chinese employees unequally; second, the year-end bonus was reduced from the three months of last year to one month.

According to sources, the strike began at 10 o'clock on the morning of December 26th. At first, there were two shifts. One shift was between 3,000 and 4,000. "The total number of 8,000 people involved is not exaggerated," said a staff member surnamed Zhang. The reporter learned that the total number of employees of LGD Nanjing Panel Factory exceeded 14,000.

The reporter saw from the online video that some public places such as the canteens of the Nanjing LG factory were destroyed.

LGD: Poor performance this year without results Gold LGD's responsible person said that the company had reached an agreement with the union yesterday afternoon and the union is currently communicating with employees.

LGD stated that "the rumors of 8,000 people involved are inconsistent with the facts." LGD also stated that the proportion of year-end bonuses for Chinese and Korean employees is also the same. LGD explained that LGD's annual bonus for the Chinese New Year is composed of two parts: fixed gold and outcome gold. Last year's benefits were good, and the year-end awards were naturally more; this year's performance was poor and the results were gone.

Some of the media cited the solution conveyed by LGD. The general manager finally decided that the year-end award should be changed from a one-month salary to a two-month salary, to take the lead in trouble, and then to shut down the Nanjing factory. In response, LGD officials said yesterday that "we need to further verify the news."

Industry: LG trapped "internal and external problems"

To explore the reasons why LGD is frequently involved in such incidents, the industry generally believes that it is not unrelated to LGD's "internal and external problems." Statistics show that the current global LCD panel prices have been falling for 17 consecutive months. LGD’s operating loss for the third fiscal quarter reached 492 billion won (approximately US$434.6 million), which is what the outside world calls “the worst quarter in history”. LGD also recently replaced CEO candidates.

Luo Qingqi, a senior director of Pall Consulting, believes that the decline in the European and American markets has also led to the idle production capacity of LG's factories in China.

On the other hand, LG's own problems are also a lot. Although LG LCD TVs are second only to Samsung's brand in the global market, their market share is excellent, but their market share in the Chinese market is much less. Currently, they not only lag behind most domestic brands but also lag behind strong foreign brands. LG's mobile phone business is also not as big in the external competitive environment.