Minimum Wage for Next Year Expected to Be Decided Between 10,210 and 10,440 Won
The minimum wage for next year is expected to be decided between 10,210 won and 10,440 won.
This represents an increase of 1.8% to 4.1% compared to the current minimum wage, and the labor sector is strongly protesting against the lower-than-expected increase rate.
On the 9th, at the 11th plenary session of the Minimum Wage Committee held at the Government Sejong Complex, the differences between labor and management could not be narrowed down, leading to a decision to hold additional meetings.
During the 10th plenary session that started at 3 PM the previous day, both labor and management presented proposals up to the 8th revised plan, reducing the gap to 720 won, but they could not find further common ground. In this regard, the public interest commissioners proposed a "review facilitation range" between 10,210 and 10,440 won.
Response from the Labor Sector and Future Outlook
When a review facilitation range is proposed, labor and management must present revised proposals within this range; however, the labor sector is strongly protesting the lower-than-expected increase rate and demanding its withdrawal.
Lee Mi-sun, Vice-Chair of the Korean Confederation of Trade Unions, stated, "We are furious about the minimum wage level submitted by the public interest commissioners in a new government that advocates labor respect," and demanded the withdrawal of the review facilitation range.
Looking at the minimum wage increase rates during the first year of past administrations, the Roh Moo-hyun administration had 10.3%, the Lee Myung-bak administration had 6.1%, the Park Geun-hye administration had 7.2%, the Moon Jae-in administration had 16.4%, and the Yoon Suk-yeol administration had 5.0%.
Even if the upper limit of the review facilitation range is decided at 4.1% this year, it is expected to remain at a relatively low level.
The meeting continued past midnight after several recesses and was eventually adjourned around 12:45 AM.
Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, stated after the meeting, "(We have demanded the withdrawal of the review facilitation range) but there is no way to reverse it under the current system. On the 10th, we plan to submit a revised proposal within the review facilitation range and attempt to reach an agreement; if no agreement is reached, we will conclude it through a vote."
The labor sector is expected to hold a press conference on the 9th to express their regret regarding the public interest commissioners' review facilitation range.
The legal deadline for announcing the minimum wage for next year is August 5.
Image source: News1
