KCCI and Assemblyman Jo Jeong-hoon Hold Forum on Minimum Wage Reform
Widening Gap in Minimum Wage Acceptance... Different Applications by Industry and Region
On the 14th, when the term of the 13th members of the Minimum Wage Commission began, a 2024 minimum wage signboard was installed at an Employment Welfare Plus Center in Seoul. The commission plans to hold its first plenary meeting for next year's minimum wage review next week. Photo by Jo Yongjun jun21@
The Korea Employers Federation (KEF) has urged the prompt implementation of differentiated minimum wages by industry. They argue that regional and industry-specific characteristics must be considered to minimize side effects.
On the 17th, KEF held a forum titled "What is the Acceptable Minimum Wage for the Public?" in collaboration with Assemblyman Jo Jeong-hoon of the People Power Party, the Korea Federation of Small and Medium Business, and the Korea Federation of Micro Enterprise, to discuss ways to enhance the acceptability of the minimum wage.
In his opening remarks, Lee Dong-geun, KEF's Executive Vice President, stated, "Over the past decade, Korea's minimum wage has increased about four times faster than the inflation rate. We must consider that minimum wages that are difficult for the market to accept inevitably lead to side effects such as job losses. Next year's minimum wage should be decided at a stable level, such as a freeze, and differentiated application by industry must be implemented."
He explained that if minimum wages are uniformly determined without reflecting significant differences in productivity, labor intensity, and payment capacity by industry and region, problems will arise where the minimum wage is not properly accepted. Vice President Lee emphasized, "Considering the reality that the gap in the proportion of workers not receiving the industry-specific minimum wage (underpayment rate) reaches 40 to 50 percentage points, it is essential to implement differentiated application by industry."
He also proposed changing the minimum wage decision-making structure. Vice President Lee urged, "The current minimum wage decision structure only intensifies labor-management conflicts. It should be reformed so that the government makes rational decisions after collecting opinions from both labor and management."
Assemblyman Jo Jeong-hoon of the People Power Party plans to proceed with legislative reforms to this end. He stated, "The single minimum wage system, which was introduced to stabilize workers' livelihoods, improve labor quality, and promote sound national economic development, may instead cause employment instability and deepen disparities between industries. We will also proceed with the proposal of a 'Minimum Wage Act amendment' to mandate the implementation of industry-specific minimum wages in the future."
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