Labor Union 10,080 Won vs Management 9,330 Won... Final Struggles in Minimum Wage Negotiations

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Regarding next year's minimum wage negotiations, the labor and management sectors are gradually narrowing the gap between their demands.

On the afternoon of the 29th, the Minimum Wage Commission held the 8th plenary meeting at the Government Sejong Complex to continue deliberations on next year's minimum wage. At this meeting, the labor and management sectors sequentially submitted their 2nd and 3rd revised proposals for next year's minimum wage at the request of Chairman Park Junsik.

The labor sector submitted 10,090 won as the 2nd revised proposal, followed by 10,080 won as the 3rd revised proposal. The management sector proposed 9,310 won as the 2nd revised proposal and 9,330 won as the 3rd revised proposal.

The labor sector's 3rd revised proposal is 10% higher than this year's minimum wage (9,160 won), while the management sector's 3rd revised proposal is 1.86% higher than this year's amount.

However, it is expected to take a little more time to find common ground. If no progress is made, it is anticipated that the public interest commissioners will suggest a facilitation range for deliberations and request revised proposals within that range.

The Minimum Wage Commission consists of 27 members: 9 worker representatives, 9 employer representatives, and 9 public interest commissioners. Considering the significant differences between labor and management positions, the public interest commissioners ultimately hold the key.

If the gap remains even after the revised proposals, the proposals (amounts) submitted by Chairman Park and the public interest commissioners will be put to a vote to determine the minimum wage level.

Meanwhile, it is reported that the Minimum Wage Commission is likely to finalize next year's minimum wage level on this day, which is the statutory deadline for deliberations.