"Fair Performance and Rewards" Angry LG Energy Solution Employees Hold 'Truck Protest'

On the morning of the 5th, protest trucks prepared by LG Energy Solution employees were circulating around Yeouido, Seoul. Photo by LG Energy Solution Employee Truck Protest Organizers

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Some employees of LG Energy Solution have launched a truck protest through anonymous fundraising, demanding improvements to the performance bonus system from management.

According to industry sources on the 5th, about 1,700 LG Energy Solution employees will conduct one-person protests using a 3.5-ton truck and speakers in Yeouido, Seoul, from today until the 29th, funded through anonymous donations.

Recently, LG Energy Solution decided to significantly reduce this year’s performance bonuses compared to last year due to the slowdown in demand growth in the electric vehicle market. The company set this year’s performance bonuses at 340?380% of the base salary, averaging 362%. Last year, when financial performance exceeded targets at a high level, bonuses were 870% of the base salary, with a maximum of up to 900% depending on performance. However, even considering the Inflation Reduction Act (IRA) tax credits, performance bonuses are based on achievement relative to targets, so there will be no changes to this year’s bonuses. The company explained that business goals are established through thorough preparation based on order status and external environment forecasts.

During this period, the truck will circulate around Yeouido, centered on Park One where LG Energy Solution’s headquarters is located, every day from 8 a.m. to 4 p.m. The truck’s electronic billboard displays phrases such as "Clarify management goals, ensure fair performance rewards" and "Disclose a performance system that matches blood and sweat."

LG Energy Solution achieved its highest-ever annual performance since its launch last year. However, it decided not to reflect the Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. IRA in performance indicators due to its high volatility. The organizers claim, "The company did not provide fair compensation for employees’ efforts related to IRA work," and "Although profits from the IRA were classified as profits on financial statements, they were excluded when calculating performance bonuses, showing a double standard to reduce costs."

They also added, "During this process, the company unilaterally notified employees without proper explanation or understanding." Their demands include calculating performance bonuses based on profits in financial statements including the IRA, and introducing a profit-sharing method that sets a certain portion of profits as the performance bonus fund based on financial statements rather than target achievement rates.

LG Energy Solution’s management performance bonuses are determined comprehensively by considering financial and competitive performance, applying the same calculation method every year since the company’s inception.

Amid recent controversies over performance bonuses among employees, LG Energy Solution held a town hall meeting for employees on the 2nd, attended by CEO Kim Dong-myeong and key executives.

At the meeting, CEO Kim said, "I empathize with employees’ opinions that improvements are needed in the current performance bonus system, and we will prepare a reasonable improvement plan within the first quarter after much consideration," adding, "We will enhance total compensation competitiveness so that employees can receive better treatment than competitors in the future."

Regarding the performance bonus controversy, the company issued an official statement on the same day, saying, "The company values the opinions of its members and aims to build the best company together through treatment commensurate with performance."

However, it added, "We express deep regret and disappointment over the repeated demands for the same issues, such as the performance bonus criteria that we have already promised to improve, through the anonymous truck protests."

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