Next Year's Minimum Wage Decision Imminent... Labor and Management Continue Final Tug-of-War

12th Plenary Meeting of the Minimum Wage Commission Held
Public Interest Commissioners: "Final Day for Minimum Wage Deliberations"

With the likelihood high that the minimum wage level for the next year will be decided on July 10, labor and management engaged in a final round of intense negotiations.

At the 12th plenary meeting of the Minimum Wage Commission held at the Government Sejong Complex on the 10th, labor and management continue to struggle over the "deliberation promotion range" proposed by the public interest commissioners. Photo by Yonhap News

The Minimum Wage Commission held its 12th plenary meeting at the Government Sejong Complex on this day. Of the 27 members, a total of 26 attended the meeting, including 9 labor representatives, 8 management representatives, and 9 public interest commissioners.

Labor and management continued their tug-of-war over the "deliberation promotion range" for next year's minimum wage proposed by the public interest commissioners. The previous day, after labor and management failed to reach an agreement, the public interest commissioners suggested a deliberation promotion range between 10,210 won (lower limit) and 10,440 won (upper limit).

The labor side immediately protested when the proposed deliberation promotion range turned out to be lower than expected. Again, during the opening remarks, they reiterated, "We express deep regret and anger at the deliberation promotion range presented by the public interest commissioners."

Ryu Kiseop, Secretary-General of the Federation of Korean Trade Unions, said, "The FKTU has repeatedly stated that this minimum wage deliberation will serve as a barometer for the new government's labor policy." He continued, "However, the proposal of an increase rate lower than that of the first year of the previous administration, which was consistently anti-labor and anti-union, raises serious doubts about the new government's labor policy." He added, "The new government's labor policy, which is just at the starting line, is already being shaken from the outset."

Ryu further stated, "The minimum wage increase rate at the beginning of a new administration is an important indicator of its governing philosophy and commitment to fulfilling campaign promises," and added, "We hope the government will demonstrate its resolve to deliver on labor pledges through a minimum wage increase." He also emphasized, "The FKTU and the Lee Jaemyung administration are partners who have signed a policy agreement for a 'great transformation toward a just society created by labor.'"

The management side expressed concerns that the deliberation promotion range would be a burden, citing the significant difficulties faced by small and medium-sized enterprises and small business owners. However, they criticized the labor side for protesting the proposed range.

Ryu Kijeong, Executive Director of the Korea Employers Federation, said, "Both labor and management agreed to submit revised proposals within the deliberation promotion range suggested by the public interest commissioners, and the chairperson also clearly reaffirmed this agreement." He pointed out, "Nevertheless, labor's request to withdraw the proposal simply because it falls short of their expectations is a serious issue that could undermine the credibility and consistency of the deliberations."

He also explained, "According to a survey conducted by the Korea Federation of Micro Enterprises in April this year, 73.9% of respondents said a decrease was appropriate, and 24.6% said a freeze was appropriate." He continued, "In a separate survey conducted by the Minimum Wage Commission, 60.4% of business owners responded that a freeze was appropriate." He added, "These results show a significant gap between the economic difficulties felt in the field and the deliberation promotion range. Management representatives will participate in the discussions with a sense of responsibility, bearing this burden in mind."

The public interest commissioners urged labor and management to reach a last-minute agreement, stating, "Today is the final day for deliberating the minimum wage level." Kwon Soonwon, a professor at Sookmyung Women's University, said, "Even if efforts for an agreement between labor and management continue, if there is no possibility of an agreement through their own efforts, it is customary for labor and management to submit new revised proposals within the range suggested by the public interest commissioners at the request of both sides, as a form of artificially promoted negotiation." He added, "We hope that both sides will actively submit new revised proposals within the suggested range."