[fn Editorial] Conclusion on Minimum Wage through Labor-Management-Public Agreement, Expansion of Social Dialogue Hoped

[Financial News] Next year's minimum wage has been concluded at 10,320 won per hour, a 2.9% increase from this year. This minimum wage decision is significant not only in terms of the amount but also in the decision-making process. It was decided through an agreement among workers, employers, and public interest members, marking the first time in 17 years since 2008 and the eighth social agreement since the introduction of the minimum wage system in 1988.
The minimum wage decision amount is 290 won (2.9%) higher than this year's minimum wage. Compared to the first-year increase rates of past governments, it is notably low. Looking at the first-year increase rates of past governments: ▲ Kim Young-sam government 8% ▲ Kim Dae-jung government 2.7% ▲ Roh Moo-hyun government 10.3% ▲ Lee Myung-bak government 6.1% ▲ Park Geun-hye government 7.2% ▲ Moon Jae-in government 16.4% ▲ Yoon Suk-yeol government 5.0%.
The reason the minimum wage was decided at a reasonable level is because both labor and management shared the perception that next year's economic situation would be worse than this year's. During the minimum wage discussion process, the labor sector emphasized that the amount still falls short of workers' living expenses, while the employer side countered with the argument that the burden of labor costs could lead to business deterioration given the economic conditions. These are arguments repeated every year. However, instead of the usual bickering over the economic situation for the next year, a unified voice of social agreement was presented.
This process of deriving the minimum wage reminds us of the social agreement era of 2008. In 2008, the global financial crisis originating from the United States heightened economic uncertainty worldwide. In Korea, a sense of crisis was pervasive across the economy. At that time, the employer side argued for freezing or reducing the minimum wage citing the economic crisis. Conversely, the labor sector demanded an increase to ensure living expenses, creating sharp confrontations. However, both labor and management reached a common understanding that the global financial crisis was a unique economic risk. They united with the mindset of making concessions and overcoming social conflicts together. This decision is evaluated as a representative case showing that our society has sufficient internal capacity to derive social agreements.
There is a strong hope that the spirit of this social agreement spreads throughout our society. Given that all members of society agree that the economic situation in Korea is very poor, a spirit of cooperation, where everyone makes concessions and unites to overcome the crisis for economic growth, is required.
Additionally, it is hoped that the culture of discussion within the Minimum Wage Commission will improve with this social agreement as a catalyst. It was common for meetings to be disrupted due to refusal to attend or mid-session exits because of differing opinions, and even physical confrontations occurred, such as tearing up ballots or seizing gavels to disrupt deliberations. The institutional mechanism of social dialogue was rendered ineffective, and the intensified labor-management conflict caused the public to frown on more than one occasion.
With this agreement as a turning point, it is time to consider moving towards a mature labor-management culture and revising the minimum wage decision system to a reasonable level. If the minimum wage decision system does not fit the times, labor-management conflicts and clashes are bound to repeat.