Labor: "We must protect the lifeline of low-wage workers" vs Management: "Companies at a crossroads of survival"

The First Full Meeting of the Minimum Wage Commission Held... Tense Labor-Management Standoff
Differences in Views on the COVID-19 Situation Revealed... Difficult Deliberations Expected
Park Junsik: "Serious Situation... Everyone's Wisdom and Effort Are Important"

On the 11th, Lee Dong-ho, a worker-side member (right), and Ryu Ki-jung, an employer-side member, who attended the first plenary meeting of the Minimum Wage Commission for next year's minimum wage deliberation, are having a conversation.
[Image source=Yonhap News]

"In the economic crisis caused by COVID-19, the minimum wage must play an even greater role as a safety net and lifeline protecting low-wage workers." (Lee Dong-ho, Secretary General of the Federation of Korean Trade Unions)

"Over the past three years, excessive minimum wage increases have caused difficulties for small and micro businesses and small business owners, and I am worried that the COVID-19 situation might deal an even more fatal blow." (Ryu Ki-jung, Executive Director of the Korea Employers Federation)

A tense power struggle unfolded between labor and management from the very first meeting regarding next year's minimum wage level. On the afternoon of the 11th, at the first plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong, the differing perspectives of labor and management on the COVID-19 pandemic were clearly revealed.

On that day, Lee Dong-ho, a worker representative and Secretary General of the Federation of Korean Trade Unions, emphasized that next year's minimum wage increase should reduce wage gaps and inequality among low-wage workers. He stated that since polarization issues worsened during economic crises such as the IMF and the global financial crisis, the COVID-19-induced economic crisis could also lead to a recurrence of these problems.

In his opening remarks, Secretary General Lee said, "All citizens and workers are going through difficult times due to the COVID-19 pandemic," adding, "Among them, the most vulnerable groups in our society?part-time workers, platform workers, subcontracted and irregular workers?are bearing the brunt of the damage."

He continued, "Polarization and inequality caused by the COVID-19 situation will deepen further. We must protect the employment and livelihoods of vulnerable groups," and stated, "If the minimum wage does not rise more than the wages of general workers, the wage gap and inequality will widen even more."

He also argued that although the nominal minimum wage has increased due to the expansion of the minimum wage calculation base, the actual effect of the increase is less than half.

[Image source=Yonhap News]

Ryu Ki-jung, an employer representative and Executive Director of the Korea Employers Federation, emphasized that the business sector is struggling due to the economic downturn caused by COVID-19 and maintained the position that the burden on companies should not be increased by the minimum wage.

He said, "Due to the internal shock of the COVID-19 pandemic, the global economy is experiencing unprecedented difficulties," and added, "Many companies are at a crossroads for survival and employment conditions have worsened due to the unexpected COVID-19 situation."

He further requested, "Before deliberating on the minimum wage, I hope everyone will consider the economic impact of the COVID-19 situation and how to maintain jobs, and work together to ensure that the minimum wage is determined reasonably."

Lee Tae-hee, head of the Smart Jobs Division at the Korea Federation of SMEs and an employer representative, said, "The crisis of companies is a crisis of labor," and expressed, "I sincerely hope that the best outcome can be achieved with the mindset that we are all in the same boat."

Park Joon-sik, chairman of the Minimum Wage Commission, emphasized the severity of the situation caused by COVID-19 and mentioned the importance of an effective 'prescription' to utilize the minimum wage system efficiently.

Chairman Park said, "The COVID-19 situation is so severe that even the President compared it to a wartime situation, something we have never experienced before," and added, "The wisdom and efforts of all stakeholders and parties in society are important in deciding the level of next year's minimum wage."

He stated, "No matter how good the system or intention is, if there is no prescription that can be used most efficiently and timely, it will not be effective," and said, "We will do our best this year to achieve good results."

Meanwhile, at this meeting, four worker representatives recommended by the Korean Confederation of Trade Unions (KCTU) were absent, with a total of 23 members attending. Earlier that morning, the Federation of Korean Trade Unions held a meeting with the KCTU regarding the minimum wage and stated, "The KCTU asked for understanding from the Federation of Korean Trade Unions due to scheduling conflicts preventing their attendance," and "The minimum wage demands will be decided later through meetings between the two major trade unions."

This content was produced with the assistance of AI translation services.