"A Sharp Increase" vs. "The 2% Red Line" ... Labor and Management Make Final Appeals Over Minimum Wage

[Financial News] As next year's minimum wage is expected to be decided on the 14th, labor and management made last-minute appeals. Labor is calling for a "sharp increase," while small business groups say even a "2% increase is the final red line."
Before the commission's 14th plenary meeting, labor and small business groups each held press conferences and presented their positions on the minimum wage increase.
The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) urged a substantial increase.
Lee Mi-seon, vice chair of the KCTU, said, "What is needed now is not a minor numerical adjustment or a moderate compromise." She added, "It is time to make a bold and substantial minimum wage increase decision to guarantee the minimum living costs that low-wage workers need to actually survive."
Management-side small business representatives, who walked out during the 13th plenary meeting on the 9th in protest against a proposal for a raise of more than 2%, also held a press conference before the meeting on this day.
Geum Ji-seon, president of the Korea Makeup and Beauty Association, and Lee Gi-jae, president of the Korea Pet Industry Association, said, "For small business owners already pushed to the brink, any increase instead of a freeze is no different from a death sentence for closure." They added, "The 2% increase proposal is the 'final red line' that small business owners can endure. We urge the public-interest commissioners to mediate fairly and reasonably."
According to the ninth revised proposal submitted so far, labor and management have put forward 11,120 won and 10,530 won, respectively. The gap between the two sides now stands at 690 won.
Tensions between labor and management continued during the opening remarks at the plenary meeting.
Ryu Gi-seop, secretary-general of the FKTU, said, "The most direct way to restore consumers' spending power for low-wage workers whose real wages have fallen due to high oil prices and high inflation is to raise the minimum wage." He added, "This year, we must make a bold increase decision and correct the distorted reality of low wages."
By contrast, Ryu Gi-jeong, executive vice president of the Korea Enterprises Federation (KEF), said, "Small and medium-sized businesses and small business owners, already burdened by a prolonged domestic slowdown and rising labor costs, have no more room to hold out." He warned, "A decision that the field cannot absorb could undermine even the minimum will of small business owners to keep operating and threaten valuable jobs."

jhyuk@fnnews.com Kim Jun-hyuk Reporter