Announcement of '2020 Minimum Wage Review Proposal' on the 19th
Adjustment of Job Stability Fund... Proposal to Introduce Maximum Wage System
Advocacy for Applying Weekly Holiday Allowance to Ultra-Short-Time Workers
[Asia Economy Reporter Kim Bo-kyung] The Korean Confederation of Trade Unions (KCTU) proposed a minimum wage demand for next year that is 25% higher than this year, set at 10,770 won per hour.
On the 19th, the KCTU held a Central Executive Committee meeting the previous day and announced the '2020 Minimum Wage Deliberation Demand' with this content.
The minimum wage level for next year was proposed at 2.25 million won per month to guarantee the minimum living expenses for worker households. Calculated based on 209 monthly prescribed working hours, the minimum hourly wage is approximately 10,770 won. This amount is about 25% higher than this year's minimum wage (8,590 won).
The initial demand was set based on the 2021 actual living expenses (2,257,702 won) predicted by last year's Minimum Wage Commission, the KCTU stated. They plan to derive a unified labor sector proposal through future consultations with the Federation of Korean Trade Unions (FKTU).
The KCTU said, "We considered that the minimum wage is a policy wage stipulated in the Constitution as a minimum social safety net for 4.4 million low-wage workers to make a living, and that it is a starting point for resolving inequality and polarization in Korean society."
They added, "The minimum wage to be applied in 2021 should act as a mechanism to shift the economic paradigm to wage-led and income-led growth in the post-COVID-19 era."
Participants are shouting slogans at the "Democratic Labor Union Rally Condemning the Cancellation of the 10,000 Won Minimum Wage" held in front of the National Assembly in Yeouido, Seoul. Photo by Hyunmin Kim kimhyun81@
Additionally, the KCTU demanded ▲ adjustment of eligibility and amount for job stability funds ▲ normalization of the minimum wage inclusion scope ▲ introduction of a maximum wage system ▲ application of weekly holiday allowance for ultra-short-time workers.
First, they argued for expanding the job stability fund, currently paid to workplaces with fewer than 30 employees, to workplaces with fewer than 100 employees. They also suggested raising the maximum monthly support for workplaces with fewer than 5 employees to 200,000 won, and adjusting the amounts for workplaces with fewer than 30 and fewer than 100 employees to 150,000 won and 110,000 won respectively.
Furthermore, the KCTU demanded that the actual wage increase rate be raised by normalizing the minimum wage inclusion scope. They insisted on applying weekly holiday allowances to ultra-short-time workers to enhance the effect of minimum wage increases and to eradicate the practice of 'split work.'
They also proposed limiting executives' and directors' salaries to 30 times the minimum wage in the private sector and 7 times in public institutions. The KCTU stated, "As of 2018, the chairman of CJ Group's annual salary was 13.684 billion won, exceeding 720 times the minimum wage," and emphasized, "A maximum wage system must be introduced."
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