Son Kyung-sik "Economic and Employment Difficulties... Government Must Also Strive for Minimum Wage Stability" (Comprehensive)

Minister of Employment and Labor An Kyung-duk and Chairman of the Korea Employers Federation Sohn Kyung-shik are attending the '30 Major Companies Human Resources and Labor Officers (CHO) Meeting' held on the 28th at Lotte Hotel in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Ki-min Lee] While labor groups have demanded a minimum wage of 10,800 won for next year, the business community has called on the government to ensure 'minimum wage stability.'

On the morning of the 28th, Sohn Kyung-shik, Chairman of the Korea Employers Federation, invited An Kyung-duk, Minister of Employment and Labor, to hold a 'Meeting of Chief Human Resources Officers (CHO) from 30 Major Companies,' where he appealed, "Considering the current economic situation, such as the impact of COVID-19, it is necessary to maintain stability in the minimum wage for a considerable period going forward," and added, "I ask the government to also make efforts to stabilize the minimum wage."

At a meeting with reporters that day, Chairman Sohn emphasized, "In the past four years, the minimum wage was significantly increased in the first two years, and then raised moderately last year and the year before," adding, "Now the labor groups are demanding a substantial increase, but the business community cannot accept that."

Earlier, labor groups including the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions held a press conference on the 25th demanding that next year's minimum wage be set at 10,800 won, a 23.8% increase from this year's minimum wage of 8,720 won, which sparked opposition from the business community. At that time, the Korea Employers Federation criticized that a sudden increase in the minimum wage could cause a significant shock amid the increased burden on small business owners and micro-enterprises due to COVID-19.

Son Kyung-sik, Chairman of the Korea Employers Federation, is speaking at the '30 Major Companies HR Executives (CHO) Meeting' held at Lotte Hotel in Jung-gu, Seoul on the 28th. Photo by Moon Ho-nam munonam@

Chairman Sohn also expressed dissatisfaction that the government does not reflect the business community's opinions when enacting or revising labor relations laws. He said, "For several years, whenever labor relations laws have been enacted or revised, the government and the National Assembly have only accepted the demands of labor unions, and I have conveyed the unfairness and the business community's disappointment," adding, "I ask Minister Ahn to help correct these issues, even if it is difficult."

Additionally, concerns were raised that the amended Labor Union Act, the reform of the working hours exemption system, and the enforcement of the Serious Accident Punishment Act are factors that could restrict corporate management activities. The point was made that the lack of specific and effective guidelines could cause confusion in the industrial field. Chairman Sohn said, "The amended Labor Union Act, which will take effect from the 6th of next month, allows the union membership of dismissed and unemployed persons, which may lead to more labor disputes," and noted that many companies are worried about a significant increase in strikes.

Regarding the Serious Accident Punishment Act, he emphasized, "Shifting responsibility solely to companies and managers cannot be a fundamental solution to industrial accidents," and stressed, "The broad and ambiguous managerial responsibility provisions of the Serious Accident Punishment Act must be corrected." At the meeting, concerns were also raised that even if all possible efforts were made in advance to prevent serious accidents, companies could still be punished if an accident occurs.

Minister of Employment and Labor An Kyung-duk responded, "The government will carefully consider the opinions of labor and management and prepare guidelines to minimize uncertainty in the field," and added, "We ask companies to also strive for coexistence." He also requested that companies actively work to employ young people, as youth employment issues are serious.

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