Korean Job Discussion Forums

[mercury]

Poor Samsung. I guess they paid too much for things like huge signs in every freakin airport! Got to LIMA, greeted by SAMSUNG, ROME...SAMSUNG. ATHENS..SAMSUNG BANGKOK SAMSUNG.




Samsung Electronics on Aug. 1 activated its crisis mode. Employees at its Hwaseong plant normally pay W30,000 (US$1=W929) for monthly dormitory fees, but from this month they have to pay double that. A one million won gift given to employees for weddings and funerals has also been scrapped.

Paid leave for long-time employees has been cut back. Workers previously were awarded paid leave on their 10, 15, 20 and 25 year anniversaries at the company, but now that is given only to workers marking their 10th and 25th years. A holiday bonus given in proportion to work years has also disappeared.

Meal subsidies have also been cut. Meals in the company cafeteria cost W3,000, of which the company used to pay W2,000. Now the company pays only W1,000.

Some Samsung workplaces are now refusing to pay overtime and a W15,000 transportation allowance for overtime work that hasn't been approved in advance. A worker at Samsung Electronics' Giheung plant said employees are being pressured to finish their work during normal hours.

Executives are feeling the pinch too. An employee in the group's corporate restructuring office said overseas business trips are being curtailed when possible and holders of corporate credit cards have to be careful not to exceed the monthly limit.

Samsung Group said, "We only told the affiliates to cut down on unnecessary costs. Detailed guidelines and action plans are set within each affiliate."

[sojourner1]

I met one 30 year old Korea who works for Samsung in one of it's finance departments as an accountant who hates it, but stays the course for a chance at a secure well paying career opportunity after having earned a prestigious business degree. He seems to have his doubts on it lasting though. Yes, the Korean companies like Samsung are trying to provide lifelong careers to it's employees due to the culture being nationalistic like America was in grandpas day, but that old model just does not fit into the dynamic global economy we have today. Korea is sorta like how America used to be in that employees make a long career with one company and then receive a pension, but that is quickly changing. Now in todays changing economic climate, companies typically only want workers on a modest wage with no union and little benefits who are easy to downsize when their profitability falls. It's tough reality to join large well known corporations after earning a degree and only get $9/hour with no ladder to cllimb, but that's all that they offer as to reduce risk and maximize profit for the shareholders and company officers. I am very sure Korean companies are becoming more like American companies as to manage the risk of ups and downs as if you meet young Korean adults, they often will tell you that their prospects are very limited after military service.