Seoul City to Promote Improvement of Corporate Taxi Wage System Amid 'Recession'... Hosting a Forum

Listening to Opinions on the "Labor-Management Agreement Wage Model" Pilot Project

A forum will be held to discuss the improvement and revitalization of the wage system in the corporate taxi industry, which is struggling due to a decrease in the number of transportation workers and a drop in operating rates.

On the 21st, Seoul City announced that it will hold a discussion on "Corporate Taxi Revitalization and Wage System Improvement Measures" on the 22nd at the Seoul Metropolitan Council Members' Hall conference room. Taxi labor and management representatives and related experts will participate.

Yonhap News

The corporate taxi industry is facing management difficulties due to a decrease in the number of transportation workers and the resulting decline in operating rates. Although taxi demand has recovered since COVID-19, the number of workers has not. Taxi operating rates plummeted from 50% in 2019 to 34% last year. Through this forum, the city plans to gather opinions on the "Labor-Management Agreement Wage Model Pilot Project" as a measure to revitalize the industry. Last October, the city prepared an implementation plan for the pilot project after consulting with taxi labor and management and applied for a special pilot permit from the Ministry of Land, Infrastructure and Transport. The ministry is currently reviewing it.

The reason for raising the issue of wage system improvement is that the current corporate taxi wage system is being operated in a distorted form in the field, contrary to its original purpose. The current wage systems, the full management system and monthly salary system, were introduced to provide a stable working environment for transportation workers. However, most taxi companies’ labor and management apply a "modified deposit system" wage contract to reduce indirect costs and provide mutual convenience, which the city explains violates related laws. The deposit system, where transportation workers must pay a certain amount as a "deposit" to the transportation company, remains in a modified form in the field.

The forum will present four types of "Labor-Management Agreement Wage Models" to improve this. ▲Performance-based pay system based on actual driving time ▲Fixed salary system ▲Autonomous operation taxi system ▲Part-time work system. A city official explained, "If the wage model is introduced, it will raise the existing wage level, contributing to improved treatment, and expand the choice according to the working environment and conditions of transportation workers."

In the subsequent comprehensive discussion, taxi industry labor and management and related experts will participate as discussants, including ▲Song Im-bong, Executive Director of Seoul Taxi Transport Business Association ▲Oh Bong-hoon, Secretary General of the Seoul Regional Headquarters of the National Taxi Labor Union Federation ▲Jung Ji-gu, Head of the Seoul Regional Headquarters of the Democratic Taxi Labor Union Federation ▲Lee Sam-hyung, Policy Chairman of the Taxi Branch of the Public Transport Union ▲Son Hyung-kwon, Director of Taxi Policy Division of Seoul City ▲Lee Moon-beom, Labor Attorney at Law Firm Isan. Various opinions such as the necessity of the pilot project, opposition, and concerns are expected to be presented.

Since the city is supporting the corporate taxi industry for taxi revitalization and convenience for citizens, it plans to prepare effective development measures reflecting field responses.

Yeo Jang-kwon, Director of the Seoul City Transportation Office, said, "Through this forum, we hope to listen to various opinions on the corporate taxi wage model pilot project and implement a new wage system that satisfies both taxi labor and management."

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