Labor Side Seeks Won 11,250, Management Won 10,520... Minimum Wage Gap Narrows to Won 730 in 8th Proposal

[Financial News] Labor and management submitted their eighth revised proposals for next year’s minimum wage at the 13th plenary session of the Minimum Wage Commission, held on the 9th at Government Complex Sejong, following the seventh revision. The labor side proposed won 11,250, while the management side offered won 10,520. Those figures represent increases of 9% and 1.9%, respectively, from this year’s minimum wage, narrowing the gap between the two sides to won 730.
Initially, the gap between labor and management’s demands for next year’s minimum wage increase stood at won 1,680. It then narrowed to won 1,630 in the first revision, won 1,540 in the second, won 1,410 in the third, won 1,290 in the fourth, won 1,060 in the fifth, won 990 in the sixth, and won 860 in the seventh, before reaching won 730.
As the two sides continue to reduce the gap, public-interest members may soon propose a so-called "mediation zone." If the gap can no longer be narrowed, the public-interest members set an upper and lower limit to encourage either a labor-management agreement or a vote within that range.
In his opening remarks at the meeting, Ryu Gi-seop, secretary-general of the Federation of Korean Trade Unions (FKTU), said, "It is deeply regrettable that concerns are being raised that the process will remain stuck in a mediation zone similar to those of previous years." He added, "The FKTU will not compromise until the end on this issue, which is directly tied to stabilizing the livelihoods of low-wage workers and, in turn, boosting domestic demand."
Lee Mi-seon, vice chair of the Korean Confederation of Trade Unions (KCTU), also expressed concern, saying, "The public-interest members, who sit there like judges, seem to be completely fixated on numbers." She added, "Delaying the proposal of a mediation zone under the pretext of waiting for a labor-management agreement makes one wonder whether they are simply trying to avoid responsibility by dragging out the process."
jhyuk@fnnews.com Kim Jun-hyeok Reporter