Seoul Bus Union "No Sign of Agreement"...City "Must Show Progressive Attitude on Wage System"

[Financial News] The wage and collective agreement (wage agreement) between the Seoul city bus labor and management is still stuck in a deadlock over the issue of ordinary wages. Seoul City maintained its stance that reforming the wage system is an essential step based on the agreement of the Daejeon bus labor and management and the recent agreement in Busan, which ended the strike. On the other hand, the union insists that the issue related to ordinary wages is a matter that has been ruled on by the Supreme Court and is not subject to negotiation.

Seoul City released a statement on the 29th, urging a change in the union's attitude, saying, "Let's stop the unproductive debate and focus on creating a wage model where labor and management can coexist."

The city claimed, "We are making every effort to find a breakthrough in city bus wage negotiations by referring to the case of Daejeon City, which reformed the wage system by converting bonuses into basic pay." The Daejeon city bus, introduced as a model case by the city, faced a lawsuit over ordinary wages filed by workers at the workplace in 2011. However, in the wage agreement at the time, labor and management reformed the wage system by abolishing various allowances such as bonuses and increasing the basic pay within a range that did not significantly change the existing wage level.

The city explained, "Specifically, by abolishing bonuses, vacation pay, and driver insurance premiums and converting the corresponding amount into basic pay, a wage increase effect of about 3.2% occurred," and "after the reform, it was agreed to increase the basic pay by 3.75%, resulting in a total wage increase of 7.6% based on the total amount."

It continued, "The Daejeon method is essentially the same as the wage system negotiation proposal presented to the union by the Seoul city bus management this year," and "the management is not trying to cut wages as the union claims, but rather to discuss the increase rate after reflecting bonuses in the basic pay to ensure the same total wage as before."

On the 28th, the Busan city bus, which eventually went on strike, also reached an agreement. The Busan city bus labor and management decided to reform the wage system by abolishing bonuses and vacation pay and including them in ordinary wages. Reflecting the Supreme Court ruling, the wage system was changed by eliminating bonuses and increasing the basic pay, resulting in a total wage increase of 10.48% for drivers.

However, the interpretation of the agreement between Seoul City and the union is divided. A union official argued, "Both Daejeon and Busan recognized bonuses as ordinary wages and reflected them as they were," and "since bonuses and vacation pay are already ordinary wages after the Supreme Court ruling, incorporating them into the basic pay and maintaining the current wage system is essentially the same."

In particular, "The wage system reform requested by Seoul City is to eliminate regular bonuses while maintaining the total wage," and "there is no contact from the management and no possibility of a dramatic resolution," he lamented.

On the other hand, a Seoul City official stated, "In the case of Busan, an agreement was also reached on the premise of wage system reform," and "we hope that Seoul will quickly come together with labor and management to seriously discuss this part in line with this framework." He continued, "The content of setting a total amount and negotiating is one of the options proposed by the union," and "as long as wage system reform is the premise, we are willing to meet and negotiate."

Ye Jang-gwon, Seoul City's transportation director, said, "The wage system reform proposal presented by the management this year is a reasonable plan with the precedent of Daejeon City, so the union needs to show a progressive attitude toward it," and "we ask for understanding and concessions so that the negotiations can be concluded smoothly at a reasonable level." chlee1@fnnews.com Lee Chang-hoon Reporter