56.7% of SME Workers Say "Next Year's Minimum Wage Should Be at Least Frozen"

Source=Korea Federation of SMEs

[Asia Economy Reporter Kim Daeseop] More than half of small and medium-sized enterprise (SME) workers believe that next year's minimum wage should at least be frozen. It appears that workers on the ground are also feeling the economic difficulties caused by the novel coronavirus disease (COVID-19).

According to the Korea Federation of SMEs on the 30th, the '2021 Minimum Wage Related SME Worker Opinion Survey' showed that 56.7% responded that the minimum wage should be 'at least frozen.' The responses were 'frozen at this year's level' (51.7%), 'increased from this year' (43.3%), and 'decreased' (5.0%) in that order.

The survey was conducted from June 18 to 23 with 400 SME workers. Regarding the question of whether labor, management, and government should agree to freeze the minimum wage in exchange for maintaining employment, 63% were 'in favor' and 11.8% were 'against.' When asked about the government's most urgent labor policy, maintaining employment (83.5%) was identified as the most necessary.

Lee Taehee, Head of the Smart Job Division at the Korea Federation of SMEs, said, "Due to the weakened basic strength of SMEs and small business owners, even a small increase in the minimum wage is a huge shock that the field cannot bear." He added, "Since this is a more difficult time than ever, it is a critical period for labor and management to share the pain to protect jobs, including minimizing the minimum wage increase."

The Korea Federation of SMEs announced the results of the SME worker opinion survey on next year's minimum wage at the '2nd Labor and Workforce Committee' held at its headquarters in Yeouido, Seoul, on the same day. Participants in the committee expressed difficulties and anxieties caused by COVID-19.

Kim Moonsik, Co-Chairman of the Labor and Workforce Committee and Chairman of the Korea Gas Station Operators Cooperative, stated, "The rate of workplaces with fewer than five employees paying below minimum wage exceeds 40%, and many places find the current minimum wage level difficult to bear." He expressed concern, saying, "Even a slight increase in the minimum wage could crush the motivation of SMEs and small business owners who are barely holding on."

Joo Bowon, Co-Chairman and Chairman of the Korea Metal Heat Treatment Industry Cooperative, also said, "Root manufacturing companies are particularly struggling due to their close ties with the shipbuilding and automobile industries, which have seen a sharp drop in orders." He added, "It is a reality that even a slight increase in the minimum wage is difficult to endure." He emphasized, "Overcoming the economic crisis requires unity between labor and management, and to survive together, next year's minimum wage must be at least frozen."

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