KCCI "Sorry for Minimum Wage Increase... Minimum Wage Commission Needs Reform"

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) expressed on the 14th that the Minimum Wage Commission's decision to raise the 2021 minimum wage by 1.5% (130 won) to 8,720 won per hour compared to the previous year was a "regrettable result." They also called for a reform of the current Minimum Wage Commission, stating that it is triggering severe labor-management conflicts.

In a statement released that day, KEF said, "Although the 1.5% increase in the minimum wage decided this time is the lowest ever, considering that the minimum wage has already risen sharply in recent years and that the external shocks caused by the COVID-19 pandemic have made the economic contraction this year visible, small and micro enterprises and small business owners are struggling to survive by enduring debt. Given this, the minimum wage should have at least been frozen, and we feel sorry for not reflecting this."

They added, "Furthermore, the current minimum wage decision system fundamentally cannot escape the limitation of a structure where the public interest commissioners appointed by the government hold the decisive casting vote between labor and management. In the future, the outdated and obsolete current decision system, which triggers wasteful debates and severe labor-management conflicts, must be completely reformed based on fairness and objectivity, so that the government and public interest commissioners take responsibility for deciding a reasonable figure that our economy can bear."

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