Minimum Wage Dispute

[Anchor Lead]

The system that conducts the nation's minimum wage level will be overhauled for the first time since it was introduced 30 years ago. The decision on how much to raise the minimum wage will be made through a dual-stage process. However, the labor sector is up in arms against the plan, insisting that the change will block workers' participation in the decision-making process.

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The key point of the government's plan to overhaul the minimum wage decision system is the introduction of a dual-stage process. The current Minimum Wage Commission will be divided into two committees, one tasked with determining the range of possible hikes and the other on making final decisions. Consisting of experts, the range-setting committee will analyze economic indicators and public opinions to present the scope of appropriate hikes. The decision-making committee will then make a final decision within the recommendations. The range-setting committee will be comprised of nine experts recommended by labor, management and the government, while the decision-making body will retain a similar structure to the current minimum wage committee and be made up of representatives of workers and employers as well as members recommended by the government and the National Assembly. Decisions on how much to raise the minimum wage will also be made in consideration of related factors, such as the economic situation, employment levels and social security benefit payments.

[Soundbite] Lee Jae-kap(Employment and Labor Minister (Seoul Gov't Complex, Jan. 7)) : "Unnecessary disputes will considerably reduce if member recommendation rights are shared by parliament, labor and management. We also expect that the change will also dispel criticism that the minimum wage is virtually determined by the government."

However, the labor sector is strongly opposing the overhaul, saying that it will exclude workers from the minimum wage decision system.

[Soundbite] Lee Ju-ho(Korean Confederation of Trade Unions) : "The plan was announced unilaterally without sufficient discussions with the labor sector. We are strongly opposing it, since the dual-track process will be unable to guarantee laborers' participation at a satisfactory level."

The government will gather public opinions of the draft plan both online and offline. As the first step, it will hold a debate among experts on Thursday.