Need to Change Minimum Wage Decision Method Taking 110 Days

Ryu Seong-geol "Longest Period Since 2007"
Only Discussions on Rate Increase Conducted
Unable to Discuss Industry-Specific Application and Expansion of Targets

Ryu Seong-geol, a member of the People Power Party, argued on the 19th that "a change in the method of determining the minimum wage is necessary." Despite the Minimum Wage Commission's deliberation period for setting next year's minimum wage reaching a record-long 110 days, there was no discussion at all regarding the differentiated application of the minimum wage or the expansion of its coverage.

Ryu, the ruling party's secretary of the National Assembly's Planning and Finance Committee, stated at the morning party strategy meeting, "As has mostly been the case until now, this time too, the minimum wage figure was decided through a vote on the public interest committee's revised proposal amid labor-management conflicts."

Ryu Seong-geol, member of the People Power Party./Photo by Yoon Dong-ju doso7@

In the early hours of the day, the Minimum Wage Commission finalized next year's minimum wage after the 15th plenary meeting. The commission voted between the final proposals submitted by labor and management (the 11th revised proposals) of 10,000 won and 9,860 won. The commission consists of 8 worker representatives, 9 employer representatives, and 9 public interest committee members. In the vote, the 9,860 won proposed by the employer representatives received 17 votes, the 10,000 won proposed by the worker representatives received 8 votes, and there was 1 abstention. With most public interest committee members siding with the employer representatives, the minimum wage was finally set at 9,860 won, a 2.5% increase from this year.

This year was recorded as the longest period taken to decide the minimum wage level. Since the minimum wage system was introduced in 1988, it has been revised three times, and since the current method was applied in 2007, the longest deliberation period before this year was 108 days in 2016.

Ryu pointed out, "It took the longest time since 2007," adding, "It seems to be time to seriously consider how long this method should continue."

Ryu reported that because the Minimum Wage Commission focused only on disputes over the minimum wage increase rate, there was no discussion at all on the sector-specific minimum wage system, which applies only to industries such as lodging and food services that lack the ability to pay the minimum wage, nor on measures for the 2.76 million workers who do not receive the minimum wage.

He criticized, "If the same time and effort are spent, it is time to answer how to expand the coverage of the minimum wage and how to increase jobs that guarantee the minimum wage," adding, "It is time to reconsider the operation method of the Minimum Wage Commission and the process of determining the minimum wage."

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