Yazılar

Samsung Electronics Union Approves 5.1% Wage Increase

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Samsung Electronics’ main union in South Korea has approved a 5.1% wage increase for 2024, finalizing a deal reached last month between the company and the National Samsung Electronics Union (NSEU). The agreement, which required ratification by union members, also includes additional benefits such as company product purchase points and 30 Samsung Electronics shares per employee.

The NSEU, representing approximately 36,000 members—around 30% of Samsung’s South Korean workforce—has previously engaged in strikes to demand better pay and working conditions. However, Samsung maintained that production remained unaffected during the disputes.

This resolution comes as Samsung Electronics faces intensified competition in the semiconductor market, particularly in AI-related memory chip production. The deal helps stabilize labor relations at a crucial time for the world’s largest memory chipmaker as it seeks to strengthen its position in the industry.

Workday Announces Layoffs of 1,750 Jobs Amid AI Investment Push

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Workday, a leading human capital management company, has announced plans to cut approximately 1,750 jobs, or 8.5% of its workforce, in an effort to allocate resources toward artificial intelligence (AI) development. This move is part of Workday’s strategy to adapt to a challenging macroeconomic environment, with high interest rates impacting tech budgets.

The news triggered a 4% jump in the company’s shares during premarket trading. CEO Carl Eschenbach emphasized that these layoffs are a necessary step to focus on AI investments and expand Workday’s global presence.

The human capital management industry is currently dealing with slower spending from enterprise clients, further complicating the business landscape. Workday expects to incur between $230 million and $270 million in charges due to the layoffs, with $60 million to $70 million recognized in the fourth quarter. As of January 31, the company employed roughly 18,800 people.

The company is facing increased competition as the industry consolidates. Recently, Paychex announced its acquisition of Paycor for $4.1 billion, and ADP purchased WorkForce Software for $1.2 billion.

Despite the layoffs, Workday is optimistic about its financial performance. The company expects its fourth-quarter and full-year financial results to meet or exceed previous forecasts, with subscription revenue expected to reach $7.70 billion for the year and $2.03 billion for the fourth quarter, aligning with analyst predictions. Workday also plans to close certain office spaces as part of its cost-reduction measures, with the initiatives expected to be completed by the second quarter of fiscal 2026.

 

Southeast Asia Salaries to Rise in 2025, with Singapore and Thailand Trailing

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Salaries across Southeast Asia are projected to see greater increases in 2025 compared to 2024, according to a report by professional services firm Aon. Conducted from July to September 2024, the study analyzed data from over 950 companies in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

The report highlighted that talent attraction and retention has become a critical challenge for organizations in the Asia-Pacific, rising from the ninth most significant risk in 2021 to the fourth in 2023, as per Aon’s Global Risk Management Survey.

“The anticipated salary hikes for 2025 remain higher than in 2024, even with expectations of a softer inflationary and interest rate environment,” said Rahul Chawla, Aon’s head of talent solutions for Southeast Asia. This trend underscores a mismatch between talent supply and demand that transcends inflationary pressures.

Several factors, including high demand for skilled talent, are driving the salary increases. For example, Southeast Asia has become a hotspot for technology companies establishing operations, particularly in Singapore. This influx of capital fuels the demand for skilled professionals to support growth.

Emerging skill sets, such as prompt engineering related to AI technologies like ChatGPT, are also reshaping the talent landscape. “These are skills that barely existed two years ago but are now in high demand,” noted Cheng Wan Hua, Aon’s director of talent analytics for Southeast Asia.

Projected Salary Increases by Country

  • Vietnam: From 6.4% in 2024 to 6.7% in 2025.
  • Indonesia: From 5.7% in 2024 to 6.3% in 2025.
  • Philippines: From 5.4% in 2024 to 5.8% in 2025.
  • Malaysia: Remaining steady at 5%.
  • Thailand: Increasing from 4.4% in 2024 to 4.7% in 2025.
  • Singapore: From 4.2% in 2024 to 4.4% in 2025.

Industry Trends
The technology and manufacturing sectors are forecasted to experience the highest average salary bumps at 5.8%. Other sectors, such as retail and life sciences, anticipate increases of around 5.4%. On the lower end, industries like energy, financial services, and transportation are projected to see more modest rises of 4.9%, 4.8%, and 4.1%, respectively.

Singapore and Thailand Lagging Behind

Both Singapore and Thailand are expected to see smaller increases compared to the regional average. Singapore’s status as a developed market, with lower inflation and slower GDP growth, contributes to its restrained wage growth, Chawla explained. Thailand faces slower economic growth and limited mobility of its talent pool due to language and deployment barriers, which constrain salary adjustments within the local market.

This regional trend reflects a shifting focus on competitive compensation as businesses strive to address the pressing challenge of talent acquisition and retention.