New LG chief strokes his union

The biggest goal for LG Electronics Co.’s new chief executive officer and vice chairman, Kim Ssang-su, is to stabilize labor relations, Mr. Kim told the press yesterday. This is the first time Mr. Kim met reporters since assuming his office on Oct. 1.

“After I was appointed chief executive officer, the first place I went to was the labor union offices,” Mr. Kim said, adding that he always meets with labor union officials when he tours LG Electronics’ provincial manufacturing facilities. Both labor and management have to perform, he said, to meet the company’s goals

Explaining his emphasis on labor relations, Mr. Kim talked about his experience in 1989 when he was an executive at LG’s plant in Changweon. Operations there were stalled for 100 days because of labor strikes. From that point, he said, he realized that corporate progress depended on labor peace.

“Holding labor unions in respect is the first step to rationalize labor relations,” Mr. Kim often tells his subordinates, he said.

LG Electronics has seen no work stoppages because of labor problems for the last 10 years.

“If we moved factories overseas, it would be because of the exchange rate, not because of our labor union,” Mr. Kim said.

The new chief executive also promised to be a hands-on manager. He said he would spend more than half his time on the road, inspecting his company’s operations. A dialogue with workers, he said, would at the minimum avoid failures.

“I will promote employees who can adapt to their environment and have strong wills rather than those who are simply smart,” Mr. Kim said.

Since joining LG Electronics in 1969, Mr. Kim has worked in the company’s refrigerator manufacturing operations and its small home appliances arm.

by Kim Sang-woo