Arrest, Strike, Absence... Will the Minimum Wage Legal Deadline Be Missed Again Today?

Deadline for Legal Deliberation on Next Year's Minimum Wage Today
Labor Sector Withdraws in Protest Against Ministry of Employment's Intervention
Conflict Intensifies Over Worker Representative Nomination
Economic Uncertainty Grows... KCTU Strike Also Expected

The statutory deadline for next year's minimum wage deliberations is approaching, but due to extreme conflicts among the government, labor, and management sectors, the outline of the minimum wage has yet to emerge. Not only the level of the minimum wage but also the pride battle over the recommendation of new worker representatives is intensifying, making it expected that proper negotiations will be difficult for a considerable period. In a situation where concerns about inflation and the economy are growing, further delays in minimum wage discussions are expected to increase the economic burden.

Labor Sector's Attendance Uncertain... "Ministry of Employment and Labor Undermines Fairness"

The Minimum Wage Commission will hold its 9th plenary meeting on the afternoon of the 29th to discuss the increase rate for next year's minimum wage. Although this day is the statutory deadline for minimum wage deliberations, the discord among labor, management, and government is so severe that the labor sector declared suspension of attendance two days prior, making it highly likely that the deadline will be missed. Earlier, all eight worker representatives declared non-participation in the plenary meeting on the 27th in protest against the government's refusal to recommend new worker representatives.

A representative from the Federation of Korean Trade Unions (FKTU) said, "The Ministry of Employment and Labor has unfairly interfered with the Minimum Wage Commission, seriously damaging its autonomy, independence, and fairness," adding, "There is a strong voice questioning the meaning of continuing participation in an unfair process, but there is also an opinion that we must exercise the representation entrusted by all workers, so we are still discussing whether to attend."

The apparent reason for the labor sector's opposition is the Ministry of Employment and Labor's unfair intervention. The Minimum Wage Commission consists of 27 members: nine worker representatives, nine employer representatives, and nine public interest representatives. Kim Jun-young, the Secretary-General of the Metal Workers' Federation of the FKTU and a worker representative, was detained after staging a 'watchtower sit-in' at the end of last month. In response, the Ministry of Employment and Labor dismissed Kim from his position by its own authority. The FKTU recommended Kim Man-jae, the chairman of the Metal Workers' Federation, as a new member, but the ministry rejected him as well, claiming he was an accomplice of Kim Jun-young.

The FKTU argues that while Kim Jun-young was detained on charges of obstructing special official duties causing injury, Kim Man-jae has not been detained and is only accused of violating the Road Traffic Act, making the ministry's refusal to recommend him unfair. On the other hand, the ministry explained that Kim Man-jae is also under investigation for obstructing official duties in the same case, making him inappropriate for the Minimum Wage Commission. A ministry official said, "We are waiting for a suitable new candidate to be recommended."

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]

Widening Gap in Minimum Wage Positions... The Korean Confederation of Trade Unions Plans General Strike Next Month

Besides the issue of worker representatives, there is also a significant difference in opinions between labor and management regarding the minimum wage level. The labor sector insists that next year's minimum wage should be 12,210 KRW per hour, a 26.9% increase from this year, while the management sector argues it should be frozen at this year's level (9,620 KRW). The initial gap of 2,590 KRW is the largest since 2018 (3,260 KRW).

Ryu Ki-jung, Executive Director of the Korea Employers Federation and an employer representative, pointed out, "The appropriate upper limit for the minimum wage that does not cause side effects is said to be 60% of the median wage, but the current minimum wage has exceeded 60% since 2019," adding, "Small business owners and small and medium-sized enterprises are at their payment capacity limits." Ryu Gi-seop, Secretary-General of the FKTU, said, "It must be significantly increased to alleviate the household living expenses burden and real wage decline of low-wage vulnerable workers and to prevent polarization."

If the minimum wage discussions remain deadlocked amid ongoing concerns about inflation and economic recession, uncertainty in our economy will inevitably increase. In particular, the Korean Confederation of Trade Unions (KCTU) plans to launch a large-scale general strike next month in Seoul and 15 other cities to condemn the anti-labor policies of the Yoon Suk-yeol administration, making it likely that conflicts among labor, management, and government will intensify further. Even the FKTU, which was relatively conciliatory before, is now engaged in extreme confrontations with the current government.

From the Minimum Wage Commission's perspective, even if the statutory deliberation deadline is missed on this day, deliberations must be expedited considering the minimum wage announcement date on August 5.

According to the Minimum Wage Act, meetings can proceed if a majority of the total members participate, but if one-third of the worker or employer representatives do not attend, agenda items cannot be approved. There is also a provision that if one side refuses to attend two or more meetings without justifiable reasons after being requested, the chairperson can make decisions, but this is not easy. A ministry official said, "If all worker representatives do not attend, it will be difficult to approve decisions."

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