Labor and Management Submit Minimum Wage Revision Proposal Today... Labor Urges "Withdrawal of Reduction Plan"

The 6th Plenary Meeting of the Minimum Wage Commission Held on the 9th
Labor and Management Plan to Submit Amendments... Final Stage of Discussions
KCTU "Considering the COVID-19 Situation"... Temperature Gap Between Two Major Labor Unions

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Ahead of the decision on next year's minimum wage, both labor and management announced on the 9th that they would submit revised minimum wage proposals. However, differences in positions between labor and management regarding the minimum wage level remained. The labor sector strongly urged the management to withdraw the reduction plan.

The Minimum Wage Commission held its 6th plenary meeting in the afternoon at the Government Sejong Complex to continue discussions on the minimum wage level applicable in 2021. With all 27 labor, management, and public interest commissioners present, revised minimum wage proposals were received from both sides, and efforts will be made to narrow the differences.

Ryu Ki-jung, Executive Director of the Korea Employers Federation and a management commissioner, emphasized in his opening remarks, "For small business owners suffering in the economic crisis and those who have or want jobs, the most important thing is the stability of the minimum wage."

He added, "An important role of the minimum wage is to send a message of hope to those at the brink of survival," and said, "I expect wise judgment from the commissioners considering the difficult circumstances."

Lee Tae-hee, Head of the Smart Jobs Division at the Korea Federation of SMEs, said, "Both labor and management presented drafts on the 1st, and today we will likely submit revised proposals," appealing, "Please understand that our proposal is to protect the jobs of employees who share the same table with small and medium enterprises and small business owners."

The labor sector demanded that management withdraw the minimum wage reduction plan and handed a document expressing the wishes of mart workers to Chairman Park Jun-sik.

[Image source=Yonhap News]

Differences in positions regarding the minimum wage level also emerged between the two major trade unions. The Korean Confederation of Trade Unions (KCTU) insisted that the government must keep its pledge of a 10,000 won minimum wage, while the Federation of Korean Trade Unions (FKTU) stated, "We will comprehensively consider the difficult situation caused by COVID-19," showing a difference in tone.

Lee Dong-ho, Secretary General of the FKTU, said, "Today is the day to submit the revised proposals requested by labor and management," adding, "Labor commissioners will submit revised proposals that comprehensively consider the economic crisis caused by COVID-19 and the difficulties faced by small and medium enterprises and micro self-employed businesses."

Yoon Taek-geun, Vice Chairman of the KCTU, criticized, "The management side insists on a negative stance that seriously undermines the existence value of the Minimum Wage Commission," and said, "Reducing the minimum wage is an act of neglecting low-wage workers and destroying the social safety net."

He emphasized, "The 956 trillion won in retained earnings piled up in the vaults of the top 30 conglomerates should be released, and the government must also keep the 10,000 won minimum wage pledge with a responsible attitude."

He continued, "President Moon Jae-in said he would turn the COVID-19 crisis into an opportunity to reduce inequality. The top priority to realize that opportunity is to raise the minimum wage," and added, "I hope an agreement will be reached to raise the minimum wage to a level that supports the livelihoods of low-wage workers in accordance with the system and purpose of the minimum wage."