Labor Sector 10,000 Won vs Management Sector 8,410 Won... Minimum Wage Battle Intensifies

Minimum Wage Commission Holds 4th Plenary Meeting on the 1st
Labor and Management Submit Initial Demands...Debate Over Appropriate Level
Management: "Reflect Economic Conditions...Minimum Wage Must Stabilize"
Labor: "This Is Not the Place to Prepare Support Measures for Self-Employed"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The labor sector has proposed 10,000 won as the initial demand for next year's minimum wage. The management side submitted 8,410 won, which is 2.1% lower than this year.

The Minimum Wage Commission held its 4th plenary meeting on the morning of the 1st at the Government Sejong Complex to discuss the initial minimum wage demands from both labor and management. With both sides having revealed their cards, a full-scale debate over the appropriate minimum wage level is underway.

Ryu Ki-jung, Executive Director of the Korea Employers Federation and a user committee member, said in his opening remarks, "Both employers and workers affected by the minimum wage strongly demand a freeze or reduction," adding, "If reviving companies and protecting jobs is a national task, discussions should reflect the economic and business conditions sufficiently to stabilize the minimum wage."

Yoon Taek-geun, Vice Chairman of the Korean Confederation of Trade Unions and a worker committee member, raised his voice, saying, "The Minimum Wage Commission is the institution that determines the minimum wage level," and "It is not a place to resolve the difficulties of small and micro self-employed businesses or to prepare support measures as claimed by the management."

Lee Dong-ho, Secretary General of the Federation of Korean Trade Unions, said, "The labor sector will submit a unified proposal that aligns with the purpose and intent of the minimum wage, such as stabilizing the lives of low-wage workers and reducing wage gaps," and added, "I hope the management's initial demand will be an increase rather than a cut or freeze."

Contrary to the labor sector's hopes, it is reported that the management side submitted 8,410 won, 2.1% lower than this year's minimum wage (8,590 won), during the closed session of the meeting. Last year, the user committee initially demanded 8,000 won, a 4.2% reduction from that year's minimum wage (8,350 won), which led to extreme clashes with the labor sector. This year, considering the COVID-19 situation, a lower reduction rate was proposed.

The worker committee reportedly proposed 10,000 won, a 16.4% increase from this year's minimum wage. This is lower than the 10,770 won initially demanded by the Korean Confederation of Trade Unions. The Korean Confederation of Trade Unions prepared a unified labor proposal through consultation with the Federation of Korean Trade Unions.

Park Joon-sik, Chairperson of the Minimum Wage Commission, encouraged both sides, saying, "This is a time that requires sincere efforts to think from the other's perspective and find common ground," and "I hope we can lead this process well to reach a conclusion where everyone is a winner, meeting the public's expectations."

Meanwhile, the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions will hold a joint press conference at noon today to announce their stance on the user committee's initial proposal. This appears to be a means to pressure the management's claims and logic.

Regarding this, a user committee member dismissed concerns in a phone call with Asia Economy, saying, "I am not worried." He explained, "I understand the rationale that the newly appointed worker committee members recommended by the Korean Confederation of Trade Unions must fulfill their roles to meet internal demands," but emphasized, "We must now look at the entire national economy."

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