Differences in Stance Between the Two Major Labor Unions Over 5% Minimum Wage Increase

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[Image source=Yonhap News]

The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) showed differing reactions to the minimum wage increase decided at 5%. While the FKTU gave a positive evaluation for preventing delays in the minimum wage decision despite finding the 5% increase disappointing considering inflation, the KCTU is expected to launch a strong struggle going forward.

The Minimum Wage Commission resolved on the 29th at the Government Sejong Complex to raise next year's minimum wage by 5% from this year to 9,620 won. Out of 27 members, 23 participated in the vote, and among the worker representatives, only the FKTU remained to vote. The FKTU stated that it participated in the vote to prevent a deadlock over the minimum wage increase. An FKTU official said, "Considering inflation and other factors, a 5% increase is not satisfactory," but added, "After careful internal review, we judged that participating in the vote was the right decision."

The KCTU expressed dissatisfaction with the minimum wage increase proposal from the start of the meeting. Four KCTU-affiliated worker representatives protested the minimum wage and left the meeting room. Park Hee-eun, KCTU Vice Chairperson, told reporters after leaving, "The public interest commissioners' proposal ultimately freezes wages and effectively reduces real wages," adding, "We believe the 5% increase will make life harder for low-wage workers."

Both major trade unions have long emphasized that the minimum wage should be raised in line with inflation. On the 28th, the two unions held a rally in front of the Ministry of Employment and Labor at the Government Sejong Complex, demanding that the minimum wage increase guarantee the survival rights of low-wage workers.

Yang Kyung-soo, KCTU Chairperson, said, "Prices, including fuel costs, are soaring, and life has become unbearable," adding, "The minimum wage is literally the bottom line to guarantee a minimum livelihood." Kim Dong-myeong, FKTU Chairperson, also stated, "Workers bore the greatest sacrifices during the COVID-19 period, and now they are forced to bear the sacrifices to overcome the current economic crisis," warning, "If the minimum wage struggle is passed over like this, greater demands will be placed on workers."

Since the minimum wage increase fell short of the expectations of the two major unions, it is expected that they will engage in struggles through various channels. The KCTU has announced plans to hold a large-scale rally with about 60,000 participants in downtown Seoul on July 2. They plan to demand the minimum wage increase again while also criticizing the labor policies of the Yoon administration.

The FKTU has decided to engage in a long-term struggle to prevent the sectoral differentiation of the minimum wage. Sectoral differentiation of the minimum wage is a key issue in next year's minimum wage deliberations, and currently, public interest commissioners have recommended related basic data to the Ministry of Employment and Labor. An FKTU official said, "Since sectoral differentiation of the minimum wage has been rejected seven consecutive times at the Minimum Wage Commission, it has practically lost its meaning," adding, "We plan to engage in legislative activities at the National Assembly and elsewhere to make its application impossible."