Labor Rights Protection

LG Electronics guarantees employees’ basic labor rights including freedom to associate and right to negotiate. It is highly praised for its fine labor-management relationship based on the labor union’s fulfillment of social responsibilities and future-oriented Win-Win Labor Relations.

HUMAN RIGHTS PROTECTION AND PREVENTION OF DISCRIMINATION

LGE recognizes the right of all employees and stakeholders to pursue happiness, to work with dignity and to have their value as human beings respected. Accordingly, LGE complies with the standards established by the UN, ILO, OECD, and other international labor organizations as well as labor laws and regulations. It established and announced Global Labor Policy that contains the values to be shared with all stakeholders in August 2010. The Labor Policy includes a regulation that prohibits forced labor that restrains mental and physical freedom, employing minors below the age of 15, and assignment of dangerous tasks to youths under the age of 18. The Labor Policy further prohibits discrimination based on gender and race, promotes compliance with the maximum working hours set forth by the law, payment for overtime, and contributes towards local economic development. In addition, the policy also guarantees employees the freedom to join a union, as well as to join in the activities of the union and freedom to organize. The Labor Policy has been distributed to all the worksites throughout the world and has been complied with as the LGE labor standards.


GLOBAL LABOR POLICY

In August 2010, LG Electronics has declared its Global Labor Policy. The policy was established as part of LG Electronics’ efforts to advance its management philosophy of “respecting human dignity,” and aims to uphold human dignity and value of all employees in terms of labor. The Global Labor Policy has been translated and distributed in a total of 20 languages including English and Chinese, and LG Electronics plans to realign and operate all of its humanity and labor related processes based on the policy.

Korean/ English Arabic Brazilian/ Portuguese Chinese Czech French Greek Indonesian Italian Japanese Polish Portuguese Russian Spanish Spanish (NA) Thailand Vietnamese German



DIVERSE COMMUNICATION CHANNELS

All employees of LGE are eligible to join and participate in the activities of labor unions, in accordance with the relevant collective bargaining agreements and labor union regulations. As of the year-end 2012, a total of 8,311 employees, representing 23% of our total workforce in Korea, were union members. The union’s infrastructure consists of one head office and six branches throughout the country. All union members have voting rights and are eligible to stand for office. In addition to the quarterly labor-management meeting and annual Collective bargaining, LGE communicates various issues, including working conditions, regularly through diverse channels. Both parties negotiate in good faith and with patience on important agendas to reach an agreement. A prime example is the adaptation of a performance oriented promotion system for production employees that was established in 2010 after 3 years of discussion. Through such efforts, the labor and the management achieved their 22nd consecutive year of agreement without dispute at the 2011 Collective bargaining held in February, proving LGE’s superiority in labor relations. In addition, LGE also operates the Junior Board to obtain suggestions from both union and non-union members. LGE further makes diverse efforts through various channels to promote effective communication.

Labor-Management Relations at LGE


Labor-Management Communication Structure



GLOBAL WIN-WIN LABOR RELATIONS

In the case of overseas offices, there is higher chance for various labor-management issues to arise due to cultural differences. As a result, LGE has spread the advanced labor-management culture and labor-management know-how to overseas offices as a part of its ongoing efforts to form a global advanced labor-management culture. In 2010, LGE launched the Global Win-Win Labor Relations Project and inspected the labor-management status of subsidiaries in Nanjiang of China, Indonesia, and Poland. LGE advised these office to establish region specific guidelines that reflect their culture and conditions. Continuing on from 2010 and to 2011, LGE a standard labor-management organization both in Korea and overseas and build an even stronger and more systematic labor-management relationship. In addition, LGE is strengthening the global labor management network to monitor and evaluate the labor-management relationship in real-time and assign a Green, Yellow, or Red signal corresponding to the situation


Employee Grievances

LG Electronics categorizes and handles employee grievances within the following six areas: cultivation, HR system, relationships, personal, working conditions, and work environment. For example, a meeting with a team leader in charge of the unit is recommended for resolving employee grievances related to career development, reassignment, performance evaluation, etc. In addition, we established “Mr. CEO Email” in 2012 as a channel for reporting grievances directly to the CEO, receiving and handling a total of 309 cases. We have established counseling centers in our domestic business and production sites and are offering counseling service to employees, helping them to deal with various issues. This service is also extended to the family members of our employees as a support system.



Grievances Resolution Process



USR(UNION SOCIAL RESPONSIBILITY)

The Labor Union of LGE held a declaration event for the Union Social Responsibility(USR) Charter in January 2010. The union has faithfully been complying with the provisions set forth in the Charter and has introduced a new concept of labor union. The union introduced the “Win-Win Labor Relations” based on social responsibilities to the public, and has been making joint efforts with the management to create a healthy and sustainable society.


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