CLASH OVER NEXT YEAR'S MINIMUM WAGE

[Anchor Lead]

With only four days left to deliberate on the minimum wage for next year, the labor sector has proposed yesterday the rate of 10,800 won per hour. The employers citing sluggish business amidst the pandemic opposed the demand. It appears more time will be needed for the both sides to agree on the minimum wage.

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Two major labor unions in Korea made their first proposal for next year’s minimum wage. They demanded 10,800 won per hour or around 2.25 million won per month, up 23.9% from this year’s rate. The trade unions claimed that the minimum wage must be raised to overcome the polarization worsened by the pandemic.

[Soundbite] Jeong Moon-ju(Chief, Policy Bureau, Federation of Korean Trade Unions) : "Economic inequality worsened since the COVID-19 outbreak. The earned income of the low income class has fallen the most by more than double digits."

Employers in the Minimum Wage Commission said the demand came as a big shock. Small business owners hit hardest by the pandemic cannot afford such a big increase.

[Soundbite] Ryu Gi-jeong(Exec. Dir., Korea Enterprises Federation) : "They claim that business is picking up, but that is confined to only a few industries. For those who have to pay minimum wage, everyday is a struggle."

Employer members of the Commission will also make their own demand shortly, but their minimum wage is expected to remain about the same as the current rate. A survey on small business owners found that 92% of the respondents said the minimum wage should be frozen or lowered. The minimum wage for next year should be decided in four days by June 29th. But so far the only thing that has been decided is that the minimum wage should be an hourly rate and must also be converted to a monthly pay. In yesterday’s discussion, the two opposing sides failed to agree on setting different minimum wages according to sectors. The employers called for varied rates by industry, while the laborers argued for one rate across the board. As the two sides also remain wide apart over the issue of a higher minimum wage, this year’s deliberation is likely to run past the deadline.