The Minimum Wage Commission Holds Its 8th Plenary Meeting
Labor and Management Present Third Revised Proposals Following the First and Second Rounds
Labor Proposes 11,360 Won; Management Proposes 10,090 Won
As labor and management continue their tug-of-war over setting next year's minimum wage past the legally mandated review deadline, the gap between their proposed wage levels has narrowed to 1,270 won.
The 8th plenary meeting of the Minimum Wage Commission held on the 1st at the Government Sejong Complex. Photo by Yonhap News
The Minimum Wage Commission held its 8th plenary meeting on the 1st at the Government Sejong Complex. This additional meeting was convened after the commission failed to reach a decision on next year's minimum wage at the 7th plenary meeting on June 26, missing the statutory review deadline of June 29.
After each side presented their first and second revised proposals at the previous meeting, both labor and management submitted their third revised proposals at this session.
In its third proposal, the labor side called for next year's minimum wage to be set at 11,360 won, which is a 13.3% (1,470 won) increase from this year's 10,030 won. This is 1.2% (140 won) lower than their initial proposal of 11,500 won.
In its third proposal, the management side requested a minimum wage of 10,090 won for next year, which is a 0.6% (60 won) increase from its initial proposal that called for maintaining the current year's level.
As a result, the difference between the labor and management's proposed minimum wage for next year has narrowed to 1,270 won. Previously, the gap was gradually reduced through the first (1,440 won) and second (1,390 won) revised proposals presented on June 26.
Although the gap has narrowed to the 1,200-won range, the fundamental differences between labor and management remain unresolved. Management continues to seek to minimize any increase in the minimum wage in light of the difficult economic environment, while labor maintains its stance on raising the minimum wage to ensure a basic standard of living.
Ryu Gijeong, Executive Managing Director of the Korea Employers Federation, stated, "Next year's minimum wage level must be determined based on the situation of small business owners and self-employed people who are already struggling to cope with the current minimum wage, so that small and micro-sized enterprises can survive."
Ryu Giseop, Secretary General of the Federation of Korean Trade Unions, remarked, "This year, with external uncertainties especially high, it is unacceptable for the Minimum Wage Commission to further burden the domestic market. Now is the time to make a bold increase in the minimum wage to revitalize domestic demand."
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