Management Proposes 1% Minimum Wage Cut... Labor Says "Meeting Is Meaningless" and Walks Out (Update)

Minimum Wage Commission Holds 6th Plenary Meeting
Labor and Management Submit Revised Proposals... Employer Maintains Reduction Plan
Labor Walks Out, Holds Press Conference... "Withdraw It"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Labor and management have submitted their first revised proposals for next year's minimum wage. The labor side proposed 9,430 won, which is 9.8% higher than this year's minimum wage, while the management side proposed 8,500 won, 1.0% lower. All worker representatives left the meeting room, stating they could not accept the reduction proposal.

The Minimum Wage Commission held its 6th plenary meeting on the afternoon of the 9th at the Government Complex Sejong to continue discussions on next year's minimum wage level. At the meeting, both labor and management submitted their first revised proposals. The labor side proposed 9,430 won, 9.8% higher than this year's minimum wage (8,590 won), while the management side proposed 8,500 won, 1.0% lower.

As the employer representatives insisted on the reduction proposal in both the initial proposal (8,410 won) and the first revised proposal, nine worker representatives declared a suspension of discussions and left the meeting room.

[Image source=Yonhap News]

Afterwards, the two major trade unions held a press conference in front of the government complex condemning the minimum wage reduction proposal. Lee Dong-ho, Secretary-General of the Korean Confederation of Trade Unions, said, "We left the meeting judging that continuing the minimum wage meeting was no longer meaningful," and raised his voice, asking, "Is a country that tries to overcome the economic crisis by cutting the wages of low-wage workers a proper country?"

He added, "Considering the public's expectations amid the COVID-19 crisis, we submitted the 9.8% (9,430 won) revised proposal," and said, "It is the result of a rational judgment made with reason and common sense."

He continued, "Throughout history, there has not been a single country that revived its economy by cutting the minimum wage," and criticized, "Employer representatives have not reduced the minimum wage but have lowered the national dignity of the Republic of Korea."

He stated, "Reducing the minimum wage is an act that drives both labor and management to the brink," and demanded, "We urge the employer representatives to withdraw the reduction proposal and submit a revised proposal again."

Yoon Taek-geun, Vice Chairman of the Korean Federation of Trade Unions, said, "We have done our best in the minimum wage deliberations for more than 5.5 million low-wage workers," and criticized, "The management side's insistence on a negative adjustment again this year is an act of tyranny."

Vice Chairman Yoon emphasized, "If the negative proposal that mocks the public and gives despair to irregular workers near the minimum wage is not withdrawn, there is no reason to remain in the Minimum Wage Commission."