Choi Im-wi, 8th Plenary Meeting... Overnight Debate Scheduled to Reach Final Conclusion
4 Democratic Labor Union Members Absent... Business Sector Focuses on Whether to Withdraw Reduction Proposal
Public Interest Committee Member: "Committed to Deciding Minimum Wage Autonomously and Independently"
[Asia Economy Reporter Kim Bo-kyung] "Both employers and workers are demanding more than ever for the stability of the minimum wage. We are currently in an era of crisis and suffering." (Ryu Ki-jung, Executive Director of the Korea Employers Federation)
"The difficulties faced by small and medium-sized enterprises (SMEs) and small business owners stem from issues such as large corporations monopolizing orders and lowering delivery prices, not from the minimum wage itself." (Lee Dong-ho, Secretary General of the Korean Confederation of Trade Unions)
The decision on next year's minimum wage has entered its final countdown. However, both labor and management sides are engaged in a tug-of-war with no concessions. While the labor sector insists on raising the minimum wage to support the livelihoods of low-wage workers, the management side is holding the freeze of the minimum wage as their bottom line. Their solutions to overcome the economic and employment crisis caused by the prolonged spread of the novel coronavirus disease (COVID-19) also differ.
On the afternoon of the 13th, the Minimum Wage Commission held its 8th plenary meeting at the Government Complex Sejong to conduct final discussions on the minimum wage to be applied next year. Earlier, the labor side had declared a boycott in protest against the management's reduction proposal (8,500 won). At this meeting, only five members recommended by the Korean Confederation of Trade Unions attended, while four members recommended by the Federation of Korean Trade Unions were absent. If the management withdraws the reduction proposal through a second revision, they may return to the meeting. Although both sides expressed their determination to decide the minimum wage through a "final debate" on this day, their positions remained parallel.
In his opening remarks, Ryu Ki-jung, Executive Director of the Korea Employers Federation, said, "Both employers who hire minimum wage workers and the workers themselves seem to have more demands for the stability of the minimum wage than ever before," adding, "Since this is a time of crisis and suffering, I hope the commissioners will make wise judgments to navigate through this period well."
Lee Tae-hee, Head of the Smart Job Division at the Korea Federation of SMEs, said, "Small and medium-sized enterprises and small business owners are barely surviving day by day with loans and government support funds," adding, "Low-wage workers are also struggling with the thought that their jobs could disappear at any time."
He continued, "The increase in the minimum wage should not become a trigger that makes the situation more difficult," and urged, "In such an uncertain situation, I hope this meeting will be an opportunity for our commission to once again carefully reflect on the desperate realities of small businesses and workers alike."
The labor side emphasized that discussions should align with the purpose and intent of the minimum wage, which is to maintain the livelihoods of low-wage workers. Lee Dong-ho, a worker representative and Secretary General of the Korean Confederation of Trade Unions, said, "The difficulties faced by SMEs and small business owners are issues related to large corporations monopolizing orders and lowering delivery prices, not the minimum wage," adding, "Legislating unfair trade practices as soon as possible is the way to sustain businesses."
He continued, "Today is the last day for minimum wage deliberations," appealing, "Please establish the original purpose and intent of the minimum wage correctly."
This year's minimum wage deliberations are expected to highlight the role of public interest commissioners as the positions of labor and management have diverged more than ever due to the COVID-19 crisis. Kwon Soon-won, a professor at Sookmyung Women's University and secretary of the public interest commissioners, requested, "Please pledge to make decisions independently without being bound by interest groups or relying on specific institutions or organizations."
He said, "As independent public interest commissioners, we will also do our utmost to decide the 2021 minimum wage autonomously and independently, free from any external influence."
Park Jun-sik, Chairman of the Minimum Wage Commission, also said, "We are not gathered here to compete. Our task is to gather wisdom for everyone," and pledged, "The public interest commissioners promise to faithfully fulfill this mission until the end."
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