[News Terms] The Casting Voter of Minimum Wage, the Gongikwiwon (Public Interest Committee Member)

There is discord over the composition of the Minimum Wage Commission regarding the decision on next year's minimum wage. The labor sector is opposing the fact that many of the newly appointed public interest members, who play the casting vote role in determining the minimum wage, are "anti-labor conservatives."

The Minimum Wage Commission is an agency under the Ministry of Employment and Labor established based on Article 12 of the Minimum Wage Act, consisting of a total of 27 members: 9 worker representatives, 9 employer representatives, and 9 public interest members.

Photo by the Minimum Wage Commission website

In deciding the minimum wage, if the employer and worker representatives cannot narrow their differences after presenting their proposals, the public interest members can suggest a deliberation facilitation range. They request the submission of possible amendments within each other's ranges and propose mediation plans. In cases where labor and management confront each other over the minimum wage decision, the public interest members effectively make the decision. For example, in last year's Minimum Wage Commission, which appeared to have decided on the employer's proposal by voting on the final demands of labor and management, public interest members played a decisive role. At that time, public interest members proposed KRW 9,920 per hour as a compromise, but four worker representatives affiliated with the Korean Confederation of Trade Unions (KCTU) voted against it, causing the agreement to collapse. Subsequently, the final demands from labor and management were put to a vote, and with the public interest members supporting the management's proposal, the minimum wage was set at KRW 9,860 per hour.

Public interest members are appointed by the President upon the recommendation of the Minister of Employment and Labor, including one ex officio member at the director-general level from the Ministry of Employment and Labor. They are selected from individuals with expertise in related fields such as economics, sociology, and labor law, who also possess political neutrality and broad representation of the interests of both workers and employers. Their term is three years and can be renewed. Even after their term ends, they must continue to perform their duties until a successor is appointed or commissioned.

Once appointed as a public interest member, they must maintain a neutral stance without political or economic interests and propose minimum wage policies considering the interests of both labor and management. The chairperson and vice-chairperson of the Minimum Wage Commission are also public interest members.

The government newly appointed 26 members of the 13th Minimum Wage Commission (8 public interest members, 9 worker representatives, and 9 employer representatives) on the 12th. The public interest members appointed include Professor Kwon Soon-won of Sookmyung Women's University, who was the secretary of the 12th public interest members, Professor Kim Ki-seon of Chungnam National University, Professor Kim Su-wan of Kangnam University, Deputy Director Seong Jae-min of the Korea Labor Institute, Professor Ahn Ji-young of Ewha Womans University, Senior Researcher Oh Eun-jin of the Korean Women's Development Institute, Professor Lee In-jae of Incheon National University, and Professor Lee Jeong-min of Seoul National University. In response, the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) issued a joint statement on the 13th, saying, "Looking at the profiles of the newly appointed public interest members, one cannot help but question whether they truly understand the original purpose and intent." They pointed out, "The biggest problem is member Kwon Soon-won, who has taken a leading role in government committees such as the Future Labor Market Research Association and the Win-Win Wage Committee, advocating for long working hours and the introduction of performance-based pay."

Meanwhile, according to the Minimum Wage Act, if the Minister of Employment and Labor requests deliberation on the next year's minimum wage by the end of March, the commission must submit the results to the minister within 90 days, and the minister must decide and announce the minimum wage by August 5. The first plenary meeting of the Minimum Wage Commission for next year's minimum wage deliberation is scheduled to be held on the 21st at the Government Complex Sejong.