“Demand for a 20% Wage Increase in a Year”… Seoul City Declares ‘Unacceptable’ to Bus Union’s Demands

Seoul City Strongly Opposes Bus Union's Demand for Wage Increase

Seoul City recently criticized the Seoul Bus Union's demand for a wage increase, calling it an inappropriate act that wastes taxpayer money.

The union is demanding a wage increase of over 20% based on total compensation, which is very concerning given that the accumulated debt from the city's public bus semi-public system is already nearing 1 trillion won.

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According to Seoul City, since the implementation of the semi-public system, both labor and management have negotiated bus driver wages annually, resulting in an average annual increase of about 4%. As a result, the proportion of driver wages has risen from 50.8% in 2008 to 68.3% by 2024.

The city explains that issues related to wage increases independent of labor-management agreements arose due to a change in the Supreme Court's ruling on ordinary wages last year.

The labor union argues that, in line with the Supreme Court ruling, existing regular bonuses must be reflected in ordinary wages, leading to a more than 10% increase in wages.

Additionally, the union is demanding an additional 8.2% increase in base pay, which would significantly raise the average wage of bus workers if their demands are fully accepted.

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Moreover, the union claims that management did not propose a wage system reform during the autonomous negotiations and is rejecting further negotiations.

Management insists that the existing wage system was established under the premise that bonuses are not included in ordinary wages, stating that it must be reformed due to the change in the Supreme Court's legal principles.

Seoul City is paying close attention to the negotiation process this year, especially since citizens faced significant inconvenience due to last year’s full strike.

To minimize citizen inconvenience should disputes arise, measures are being put in place, with particular concern for increased traffic congestion due to the announcement of disputes using the 'lawful strike' method.

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Accordingly, Seoul City plans to implement special traffic measures during peak commuting hours.

They will expand subway operating hours and run free shuttle buses to support citizen mobility. Additionally, traffic police will be deployed in major traffic congestion areas in close cooperation with the Seoul Police Agency.

Lee Jang-kwon, the head of the Seoul City Transportation Department, emphasized, "Given the large transport costs resulting in annual deficits, a sharp increase in labor costs is inevitable to lead to a financial burden. We must achieve an agreement that citizens can accept through concessions and compromises."

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