Differential Application of Minimum Wage... Labor "Against Principle" vs Employers "Possible Due to COVID-19 Situation"

3rd Full Meeting of the Minimum Wage Commission... Addressing Issues of Differential Application by Business Type
Clear Differences Between Labor and Management Positions... Initial Proposal Not Presented
Legal Deliberation Deadline Missed... Park Junsik "Feels Great Responsibility"

At the 3rd plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong on the 29th, Chairman Park Junsik and attendees are saluting the national flag. From the left, Chairman Park, user-side member Ryu Gijeong, worker-side members Lee Dongho (Secretary General of the Korean Confederation of Trade Unions) and Yoon Taekgeun (Vice Chairman of the Federation of Korean Trade Unions).
[Photo by Yonhap News]

"We are currently in the midst of the COVID-19 crisis, and the legal intent to apply differentiated minimum wages is fully justified." (Ryu Gijeong, Executive Director of the Korea Employers Federation)

"Differentiation by industry contradicts the absolute standards and principles that minimum wages should protect low-wage workers." (Lee Dongho, Secretary General of the Korean Confederation of Trade Unions)

The Minimum Wage Commission held its 3rd plenary meeting on the afternoon of the 29th at the Government Complex Sejong to focus on the issue of differentiated minimum wage application. This day was the statutory deliberation deadline set by the Minimum Wage Act. However, since neither labor nor management has yet submitted their initial proposals, the legal deadline was missed once again.

Before the full-scale discussion on the minimum wage level, the issue of differentiated application by business type was addressed. Both labor and management showed clear differences in their positions on the issue of industry-specific minimum wage differentiation, indicating anticipated difficulties. Every year, the management side has advocated for differentiated minimum wages by industry and scale, while the labor side has maintained opposition.

Lee Dongho, a worker representative and Secretary General of the Korean Confederation of Trade Unions, raised his voice, saying, "The issue of industry selection and conflicts by industry could undermine employment stability," and emphasized, "Minimum wage is a system to protect low-wage workers, not employers."

He further stressed, "Differentiation by industry contradicts the absolute standards and principles that minimum wages should protect low-wage workers."

[Image source=Yonhap News]

Yoon Taekgeun, Vice Chairman of the Korean Confederation of Trade Unions, said, "Both management and labor confirmed that the minimum wage has a significant impact on low-wage workers and that measures for small self-employed businesses are urgently needed," adding, "There are differences in how to solve these issues, but they can be sufficiently resolved through mutual consultation and discussion."

He continued, "A prerequisite is that management should not demand freezing or cutting the minimum wage as they have done for over ten years," and rebutted, "Management claims that the minimum wage has risen sharply and that Korea’s minimum wage is among the highest in the world, but based on 2018 OECD member countries, Korea’s minimum wage is still at a low level."

Ryu Gijeong, an employer representative and Executive Director of the Korea Employers Federation, stated, "The rate of workers earning below minimum wage and the number of workers working less than 15 hours in small businesses have increased, while self-employed businesses with employees have significantly decreased," and added, "It seems that the current minimum wage level is unaffordable, leading to desperate measures."

He further argued, "The Minimum Wage Act includes provisions allowing differentiated application by business type. Until now, conditions and environments for such differentiation have not been met, resulting in repeated stalemates," and insisted, "Now, standing in the midst of the COVID-19 crisis, the legal intent to apply differentiated minimum wages is fully justified."

Lee Taehee, Head of the Smart Job Division at the Korea Federation of SMEs, said, "Workers are struggling, but small and medium-sized enterprises are fighting for survival," and earnestly requested, "I sincerely ask the commissioners to carefully consider these urgent circumstances on the ground during deliberations."

Meanwhile, Park Junsik, Chairperson of the Minimum Wage Commission, expressed personal responsibility for missing the legal deadline, saying, "I feel a great personal responsibility," and pledged, "I will strive to ensure that the process moves forward with speed and substance from now on."

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