Minimum Wage Legal Deadline D-5... Minju Nochong Warns "If Increase Is Blocked, We Will Smash Through Struggle"

Labor vs Management Positions Deeply Divided Again This Year
Labor Demands 12,210 Won... 26.9% Increase

On the 24th, near Hyehwa Station in Seoul, members of the Korean Confederation of Trade Unions held up hand placards calling for an increase in the minimum wage at the "National Workers' Rally for the Resignation of the Yoon Seok-yeol Administration." [Image source=Yonhap News]

With less than a week remaining until the legal deadline for deliberating next year's minimum wage, tensions between labor and management continue to run high. The Korean Confederation of Trade Unions (KCTU) held a workers' rally on the 24th, demanding an increase in the minimum wage to the 12,000 won range and calling for the resignation of the Yoon Seok-yeol administration.

On that day, the KCTU held a nationwide workers' rally near Daehak-ro in Jongno-gu, Seoul, with an estimated attendance of about 10,000 people (according to the organizers). They demanded a minimum wage increase to 12,210 won for next year, opposed the differential application of minimum wages by industry, and called for the elimination of gender wage gaps.

Yang Kyung-soo, chairman of the KCTU, said in his opening speech, "A hasty decision on the minimum wage will accelerate the downfall of the Yoon Seok-yeol administration," adding, "The resignation of the Yoon Seok-yeol administration is the shortcut to raising the minimum wage. Let us smash those who block the minimum wage increase through struggle and protect the survival of all workers."

Chairman Yang emphasized, "The minimum wage is a safety net for survival," and said, "The living expenses of single-person households far exceed the minimum wage, so how can workers and ordinary people survive? The minimum wage must be equally guaranteed to platform workers, migrant workers, and people with disabilities."

The legal deadline for deliberating next year's minimum wage is August 29. The final announcement deadline is August 5, so deliberations must be completed by mid-next month at the latest. The minimum wage deliberation proceeds by narrowing the gap between the initial demands submitted separately by labor and management.

The labor side recently proposed an initial demand of 12,210 won per hour for next year's minimum wage. When converted to a monthly salary (applying 209 working hours per month), this amounts to 2,551,890 won. This is 26.9% higher than this year's minimum wage (9,620 won per hour, 2,010,580 won per month).

On the 24th, Yang Kyung-soo, Chairman of the Korean Confederation of Trade Unions, is delivering the opening speech at the "National Workers' Rally for the Resignation of the Yoon Suk-yeol Administration" held near Hyehwa Station in Seoul. [Image source=Yonhap News]

The management side has not yet announced its initial demand. However, it expressed regret over the labor side's proposal of around 12,000 won.

Ryu Ki-jung, executive director of the Korea Employers Federation, pointed out, "Small business owners are expressing their grievances almost in despair," adding, "With the weekly holiday allowance, the wage already exceeds 11,300 won, and considering the five major social insurances and retirement benefits, labor costs amount to about 140% of the minimum wage."

He emphasized, "Small business owners find it difficult to bear this burden," and said, "The workers' representatives proposed a 26.9% increase in their initial demand, which is tantamount to telling everyone to close their doors."

Due to the significant gap between labor and management positions this year as well, there are forecasts that meeting the legal deliberation deadline will be difficult. Since the introduction of the minimum wage system in 1988, the Minimum Wage Commission has only met the deadline nine times.

From the management perspective, the burden of labor costs has increased since COVID-19, and with the failure of differential application by industry, it is expected that they will fiercely defend against minimum wage increases.

Earlier, the Minimum Wage Commission held its 7th plenary meeting on the 22nd and announced that the vote on whether to apply differentiated minimum wages by industry was rejected. Out of 26 members, 15 voted against and 11 in favor. Accordingly, the differential application of minimum wages by industry, which management groups such as small business owners have continuously advocated for, will not be implemented next year either.

Small business owners, who have been struggling with rising labor costs, immediately protested. They argue that the minimum wage has increased by 48.7% over the past six years, placing an excessive burden on industries such as lodging, restaurants, convenience stores, and taxi transportation, and demand differential application of the minimum wage limited to these sectors.

The Korea Federation of Small and Medium Business issued a statement immediately after the rejection, criticizing, "The desperate cries and earnest pleas of small business owners nationwide were once again ignored," and added, "Not only have the clearly existing legal provisions in minimum wage decisions over the past 35 years been ignored, but the relevant regulations were also disregarded in the 2024 minimum wage decision."

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