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This article appeared on the paid content service DealSite TV Plus at 5:24 PM on May 23, 2026.
Job security is the primary concern of LG Electronics’ People-Centered Office Workers Union (the Office Workers Union). The union argues that splitting bargaining units is necessary to safeguard employment, saying LG Electronics has repeatedly carried out workforce restructuring—including voluntary retirement programs—as profit growth slows. Legal experts say a split of bargaining units is unlikely, but if calls for separation gain traction they could intensify conflicts across wage negotiations and collective bargaining.
On May 23, Office Workers Union Chairman Yoo Jun-hwan said voluntary retirement programs should be carried out only after the company announces conditions and eligibility criteria in advance and accepts voluntary applications. He said that, in practice, the company has recently been conducting one-on-one interviews targeting low performers, which effectively amount to recommended resignations. He added that the union’s key demands are greater transparency in personnel decisions and the right to negotiate independently.
The union’s focus on job security is closely tied to LG Electronics’ weakening profitability. Last year, LG’s consolidated sales rose 1.7% year on year to KRW 89.2 trillion (about $66.9 billion), but operating profit fell 27.5% to KRW 2.4784 trillion (about $1.86 billion). Analysts attribute the decline largely to repeated losses at the MS Business Division, which handles the TV business, putting pressure on the company’s overall margins. Although the MS division returned to profit in the first quarter, market watchers say pressure from low-cost Chinese competitors and tariff-related headwinds persists.
LG currently has three active unions: the LG Electronics Union, the LG Electronics chapter of the Korea Metal Workers’ Union, and the Office Workers Union. Only the LG Electronics Union, which represents a majority of employees, holds the formal bargaining rights. Critics contend that because the LG Electronics Union is dominated by skilled trades workers and generally adopts a moderate stance, it does not always represent the concerns of the other unions.
For that reason, the Office Workers Union says separating bargaining units is necessary to address issues such as job security and performance-based pay. Market observers, however, say an actual split is unlikely. The Office Workers Union applied in 2021 to separate its bargaining unit at both the Seoul Labor Commission and the Central Labor Commission, but both requests were dismissed.
Yoo said the union has appealed to the LG Electronics Union for years to address performance-pay issues and requested that those issues be discussed at the bargaining table, but the requests were not accepted. He argued that differing priorities across job categories make separate bargaining necessary.
Requests to split bargaining units have risen because different job groups pursue distinct interests. Skilled workers, for example, prioritize compensation issues such as overtime pay tied to shift schedules, while office workers focus on working hours and employment conditions.
A legal official said applications to separate bargaining units continue because of differences between job groups, and tribunals have recognized some of those cases. He said the central question is not merely whether job categories differ but whether substantial differences in working conditions exist. Given the possibility that the company could be required to negotiate separately with multiple unions, management appears to be reviewing a range of scenarios.
LG Electronics said voluntary retirement programs are conducted after thorough explanation and communication as part of workforce renewal. The company added that, under the current legal framework, the one-company-one-bargaining principle applies, so it negotiates with the majority union (the LG Electronics Union).
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