[Edaily Reporter Choi Oh-hyun ] LG Energy Solution and LGCHEM,LTD are splitting the production workers’ union they have jointly maintained since their corporate spin-off, marking the first such separation in about six years. Following separate collective bargaining negotiations by the two companies, wage and welfare disparities widened, leading to growing support—particularly among LG Energy Solution union members—for the union to split.

According to the LGCHEM,LTD and LG Energy Solution Branch of the National Chemical, Textile, and Food Industry Labor Union on the 1st, a general meeting of union members held the previous day to vote on the branch split saw 2,830 out of 3,145 eligible voters from both LG Energy Solution and LGCHEM,LTD participate, with the motion passing by a 56.08% majority.

At LG Energy Solution, 1,769 members voted, with 1,358 (approximately 77%) supporting the split. In contrast, LGCHEM,LTD union members overwhelmingly opposed the split. At LGCHEM,LTD, 1,061 out of 1,170 members voted, with 229 in favor and 829 (approximately 78%) opposed.

LG Energy Solution was launched in December 2020 through a spin-off of LGCHEM,LTD’s battery business division. However, although the legal entities were separated, the union—composed primarily of production and technical staff—maintained a single organization called the “LGCHEM–LG Energy Solution Branch” to strengthen its bargaining power. The LGCHEM–LG Energy Solution Branch union is affiliated with the KCTU’s Chemical, Textile, and Food Workers’ Union, which is centered on production workers.

For the three years immediately following the spin-off, the two companies engaged in joint bargaining, but beginning in 2024, they conducted separate negotiations. Subsequently, as wages and working conditions diverged due to differences in business conditions between the two companies, calls for a union split—led primarily by LG Energy Solution union members—grew louder.

According to union data, the cumulative base salary increase from 2024 to 2026 was 14.0% for production and technical staff at LG Energy Solution and 9.99% for production and technical staff at LGCHEM,LTD. In 2026, the average annual salary was approximately 118.3 million won at LG Energy Solution and approximately 109 million won at LGCHEM,LTD, resulting in a gap of about 9.3 million won. Differences also emerged in welfare programs such as holiday bonuses, comprehensive health checkups, and educational assistance.

Subsequently, within the union, opinions clashed: some argued that, given the differences in each company’s business environment and wage structures, separate unions should conduct negotiations tailored to each company, while others contended that splitting the union could weaken bargaining power. It was reported that concerns over the “two companies, one union” system—namely that differing company-specific issues would make negotiations difficult and slow down decision-making—clashed with the view that splitting the union could weaken job security and bargaining power.

Following the approval at this general meeting, the production-line unions at both companies are expected to conduct all processes—from drafting bargaining demands to negotiations—independently for each company. At LG Energy Solution, which already has a higher proportion of research, technical, and administrative staff compared to LGCHEM,LTD, an administrative staff union was launched in 2022 and has been operating independently ever since.

Management also anticipates that the bargaining process will become significantly smoother, as it will now be able to consult with independent unions tailored to each company’s specific business environment and wage structure.