Labor and Management Submit Revised Proposal... Worker Representatives Walk Out Over Employer's Reduction Plan
Emphasis on 'Inevitability of Reduction' in Meeting... Public Interest Commissioners Persuaded
Public Interest Commissioners Issue Appeal Urging 'Minimum Wage Agreement'
Final 'Bargaining' on Minimum Wage Expected at 8th Full Meeting on 13th
"We openly shared the stories from the field with the public interest commissioners. It was a productive time to understand each other's positions."
On the 9th, the committee faced a deadlock as the worker representatives walked out of the plenary meeting while deliberating the minimum wage. However, the meeting itself was not canceled. The employer representatives and public interest commissioners continued an 'overnight discussion' past midnight. One employer representative who attended the meeting said, "We fully conveyed the desperate feelings of the business community and the voices from the field."
Employers Hold 'Overnight Discussion' with Public Interest Commissioners Excluding Labor Representatives
The business sector's proposal to cut the minimum wage sparked backlash from labor. On that day, the employer representatives presented a first revised minimum wage proposal of 8,500 won, which is 1% lower than this year's minimum wage. They argued that due to the difficulties in business management caused by the COVID-19 pandemic, they had no choice but to reduce the minimum wage.
As the business sector presented a negative increase rate in both the initial and revised proposals, the labor representatives declared a boycott of the meeting. The worker representatives sharply criticized, "It is meaningless to discuss the minimum wage with those who want to cut the wages of low-income workers." They also argued that since the current minimum wage of 8,590 won was decided based on the business sector's proposal, advocating for a cut is self-contradictory.
While the labor side chose the 'justification' of refusing the meeting to uphold the purpose and intent of the minimum wage system, the business side chose 'pragmatism.' They decided to stay until the end of the meeting to persuade the public interest commissioners. In the meeting room where all worker representatives had left, they had time to freely express their positions to the public interest commissioners. As a result, the labor side's boycott declaration could potentially be a misstep in the minimum wage deliberations.
Employers: "Cut Proposal Unavoidable"... Public Interest Commissioners: "Consider Social Perception"
In a closed meeting, employer representatives appealed, asking for understanding of the business sector's position that submitting a cut proposal was unavoidable. They conveyed that reducing the minimum wage is a last-ditch effort to protect jobs and an inevitable choice for corporate survival. One employer representative said, "We are not trying to cut the wages of existing employees. We just want to reduce the labor cost burden for new hires."
Another employer representative lamented, "Business management is so difficult that we have no choice but to lay off employees. The issue is not the minimum wage but survival and jobs." In response, public interest commissioners reportedly continued to express their stance that the cut proposal is difficult to accept, asking to consider social perception. The overall view of the public interest commissioners is that cutting the minimum wage goes against public sentiment and lacks practicality.
Both sides presented indicators and data to support their arguments and engaged in heated debates. Although voices rose in intense discussions, occasional hearty laughter from the group could be heard outside the meeting room. However, even after changing the session to the 7th plenary meeting past midnight, the employer representatives did not give up on the cut proposal.
Public Interest Commissioners: "Labor and Management Should Submit Negotiable Revised Proposals"... Final Negotiation on the 13th
After the meeting, the public interest commissioners issued a statement urging both labor and management to submit realistic and negotiable revised proposals for minimum wage agreement.
They emphasized, "Delaying the minimum wage deliberations any further is tantamount to denying the role of the Minimum Wage Commission itself," and added, "It could cause harm not only to workers living on the minimum wage but also to employers affected by the minimum wage."
They earnestly requested, "We sincerely ask both labor and management to submit negotiable and realistic revised proposals at the 8th plenary meeting scheduled for the 13th."
Finally, they urged, "Both labor and management should not be bound by the roles of their interest groups but should sincerely participate in the deliberations as independent minimum wage commissioners."
Meanwhile, the 8th plenary meeting is scheduled to be held on the afternoon of the 13th at the Government Complex Sejong. As the 'deadline' to finalize the minimum wage deliberations approaches, labor and management are expected to hold a decisive discussion to reach a final agreement on the minimum wage.
Minimum wage deliberations have faced difficulties every year, but this time, the gap between labor and management's views on the COVID-19 situation is so wide that further turmoil is anticipated. Last year, the public interest commissioners decided the minimum wage by voting on the final proposals submitted by both sides.
However, if the business sector continues to insist on the cut proposal or the labor side continues to refuse to attend meetings, the public interest commissioners will need to take a more active role. This could involve setting upper and lower limits for the minimum wage increase rate (deliberation promotion range) to attempt an agreement or deciding by vote.
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