50,000 to 200,000 KRW for New and Long-Term Employees
Decline in Corporate Taxi Drivers... Drop in Operation Rates
Wage Improvements... Promotion of 'Labor-Management Agreement Wage Model'
Seoul City will, for the first time this year, provide employment stability payments to newly hired corporate taxi drivers and those who have worked for the same company for more than 10 years. The aim is to increase new inflows and prevent attrition through improved treatment of these workers.
According to Seoul City on the 26th, the city paid a monthly employment stability allowance of 50,000 KRW to 2,296 long-term employees with over 10 years of service on the 5th of this month. Newly hired drivers will receive their first monthly payment of 200,000 KRW in April after confirming that they have worked for more than three months since joining this year.
Currently, there are about 20,000 corporate taxi drivers operating in Seoul. This number has decreased by 10,000 compared to 2019, and with low new inflows, the taxi industry is suffering from severe labor shortages and management difficulties. In fact, the corporate taxi industry has experienced a high turnover rate compared to other sectors, starting with reduced transportation income during the COVID-19 pandemic and the easing of conditions for transferring individual taxi licenses. Additionally, low wages relative to working conditions result in low new driver recruitment.
The operation rate of corporate taxis also plummeted from 50.4% in 2019 to 32.5% in 2022. Although there was some recovery in 2023, the rate remains low.
The employment stability payment for corporate taxi drivers, which Seoul City is providing for the first time this year, will be applied for and paid on a monthly basis. Seoul City plans to verify eligibility and exclusion criteria and pay the employment stability allowance at the end of each month. The payment period is up to one year for both newly hired drivers and long-term employees.
New drivers must have joined this year, worked for the same company for at least three months, and have a record of operating at least 15 days per month. Long-term employees must have at least 10 years of continuous service at the same company. However, those subject to administrative sanctions due to driver negligence under the Passenger Transport Service Act and Taxi Development Act will be excluded from payment for three months.
Earlier, Seoul City prepared a 'Corporate Taxi Labor-Management-Government Agreement Wage Model' to improve the actual treatment of taxi drivers and applied for a demonstration project under the Ministry of Land, Infrastructure and Transport's 'Mobility Regulatory Sandbox' in November last year. The 'Labor-Management-Government Agreement Wage Model' is the first time that corporate taxi labor and management have agreed on wage distribution levels based on monthly transportation income, allowing drivers to clearly know their monthly salary levels. It also aims to pilot part-time work and autonomous taxi systems with monthly rental fees.
The Ministry of Land, Infrastructure and Transport plans to listen to opinions from related organizations, submit the proposal to the 'Mobility Innovation Committee,' and if the demonstration project is approved, implement it for taxi companies and drivers who wish to participate. Yeo Jang-kwon, Director of Seoul City's Transportation Office, said, "The corporate taxi industry is experiencing severe labor shortages and management difficulties due to a decrease in workers. We hope that the employment stability payment will simultaneously achieve two goals: stable settlement of new drivers and prevention of attrition among long-term employees."
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