Major Labor Federations: "Minimum Wage Hike Rate Is a Betrayal of the People... Lee Jaemyung Administration Must Take Responsibility"

The two major labor federations criticized the decision to raise next year's minimum wage by only 1.8% to 4.1% over this year's level, calling it "a clear betrayal of the people" and putting pressure on the Lee Jaemyung administration.

The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) held a press conference condemning the minimum wage deliberation promotion zone on the 10th in front of the War Memorial in Yongsan-gu, Seoul. Photo by Choi Youngchan

The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) held a press conference on the 10th in front of the War Memorial in Yongsan-gu, Seoul, stating, "The new government must fully acknowledge its responsibility for this situation and clearly state its position regarding the anti-labor actions of the public interest members."

Ryu Kiseop, Secretary-General of the FKTU, said, "The maximum increase presented is even lower than the rate set in the first year of the Yoon Sukyeol administration, which was consistently anti-labor and anti-union in its policies. The new government has set addressing polarization and reducing industrial accidents as national priorities, and if it truly intends to realize these goals, raising the minimum wage should be the starting point."

Lee Miseon, Vice President of the KCTU, stated, "Why is the Lee Jaemyung administration, which was launched on the hopes of candlelight citizens, so cold and indifferent? If this deliberation is rushed to a conclusion, the Lee Jaemyung administration will bear full political and social responsibility."

Previously, labor groups proposed a revised minimum wage of 10,900 won, an 8.7% increase over this year's wage, while business groups suggested 10,180 won, a 1.5% increase. As the gap failed to narrow, public interest members of the Minimum Wage Commission presented a deliberation promotion zone at the 10th plenary session on July 8, suggesting that next year's minimum wage be set between 10,210 won and 10,440 won. The increase rates for the lower and upper bounds of this range are 1.8% and 4.1%, respectively, compared to this year.

Even if the increase is set at 4.1%, the first minimum wage increase under the Lee Jaemyung administration would be the lowest among all first-year increases of previous administrations. The first-year minimum wage increases were 10.3% under the Roh Moo-hyun administration, 6.1% under the Lee Myung-bak administration, 7.2% under the Park Geunhye administration, 16.4% under the Moon Jaein administration, and 5.0% under the Yoon Sukyeol administration. The lowest since the introduction of the minimum wage was 2.7% under the Kim Daejung administration (decided in 1998), but that was during the International Monetary Fund (IMF) financial crisis.

Meanwhile, the Minimum Wage Commission failed to narrow the gap during the 11th plenary session, which continued into the early morning hours, and is scheduled to hold the 12th plenary session later today to reach a conclusion.