Lotte Holdings Labor and Management Agree on 2020 Wage Freeze and Partial Suspension of Welfare Programs

Reforming Work Systems and Improving Welfare Policies to Suit the Changing Era

[Asia Economy Reporter Lim Hye-sun] Lotte Holdings labor and management have agreed to cooperate to overcome the novel coronavirus disease (COVID-19) crisis together based on mutual trust and to build sustainable competitive strength. They decided to freeze wages for 2020 and temporarily suspend some welfare programs.

On the 17th, Lotte Holdings announced that it held the "Lotte Holdings Labor-Management Cooperation Declaration Ceremony" at Lotte World Tower in Jamsil, Seoul, attended by 10 members of the labor-management council, including Vice Chairman Song Yong-deok, the representative of Lotte Holdings management, and Chief Kim Bong-se, the representative of the workers. At this declaration ceremony, Lotte Holdings labor and management empathized with the difficult business environment caused by COVID-19 and issued a joint declaration expressing their shared commitment to mutual cooperation.

In the declaration, the company pledged to reform the wage system and work structure and improve welfare programs to suit the changing times to promote coexistence with employees. Employees agreed to freeze wages for 2020 and temporarily suspend some welfare programs to overcome the crisis together. Furthermore, they promised to make their best efforts in their respective positions to actively respond to the rapidly changing business environment and achieve their goals.

Additionally, Lotte Holdings labor and management vowed to create a foundation of mutual trust through transparent and ethical management while doing their utmost to fulfill social responsibilities.

Lotte Holdings labor and management resolved to diligently work so that this joint declaration can strengthen labor-management relations amid difficult internal and external conditions and serve as an opportunity to expand Lotte Group's competitiveness.

Vice Chairman Song Yong-deok said, "Today's coexistence declaration is a pledge for labor-management cooperation at the holding company and a starting point to promote coexistence with the 120,000 employees of our Lotte Group," adding, "All executives and employees must have confidence and a spirit of challenge to overcome this crisis and turn it into an opportunity to improve our organizational structure to survive in the new normal era."

This content was produced with the assistance of AI translation services.