"Next Year's Minimum Wage Should Be Frozen"
SME Sector Expresses Regret Over Rejection of Industry-Specific Minimum Wage Rates
Calls for Policy Reflecting the Hardships of Vulnerable Industries
The small and medium-sized enterprise (SME) sector has expressed regret over the failure to implement differentiated minimum wage rates by industry for next year.
On June 19, the Korea Federation of SMEs issued a statement saying, "The employer representatives agreed on the necessity of differentiated application for industries with particularly low minimum wage absorption capacity, such as the taxi transportation sector and franchised convenience stores. In order to address concerns from public interest and employee representatives, we proposed the restaurant industry as a candidate for differentiated application, taking into account labor productivity and business closure data. However, the proposal was ultimately rejected."
The statement added, "With this decision, it is now impossible to apply differentiated minimum wage rates by industry next year. The employer representatives clearly state their position that next year's minimum wage must reflect the management realities of the most vulnerable industries that cannot bear the current wage level."
It continued, "Given the ongoing domestic demand slump and increasing internal and external uncertainties, micro-enterprises and small business owners are facing a serious management crisis. Therefore, next year's minimum wage level should be frozen, prioritizing business survival and job stability above all else." The employer representatives once again urge the government and the Minimum Wage Commission to establish the statistical infrastructure necessary to ensure that the differentiated application by industry, as stipulated by law, can be implemented in practice.
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