DISAGREEMENT ON NEXT YEAR'S MINIMUM WAGE

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A tripartite panel deliberating on next year’s minimum wage has again failed to reach a conclusion by the legal deadline which was Tuesday. Representatives standing for the employers proposed a freeze but labor reps have proposed a record level of minimum wage, as a bitter of tug of war is expected.

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Tuesday was the legal deadline to determine the minimum wage for 2022. For the first time in six discussion sessions, proposals from the business and labor side were submitted to the Minimum Wage Commission. Labor representatives are demanding 10,800 won, the largest amount ever suggested. Business representatives want a freeze of the current 8,720 won. E ployers argue the current minimum wage is sufficient for an unmarried one person household to make a living. They said that compared to other countries, the level is not low.

[Soundbite] Ryu Ki-jung(Korea Enterprises Federation) : "Based on the most important factor of small-scale firms’ payment ability, we believe there are no grounds that necessitate a wage hike."

Labor officials argued that livelihood expenses should take into account a multi-person household instead of a single-person household. They called for higher minimum wage to defuse polarization concerns fueled by the pandemic.

[Soundbite] Park Hee-eun(Korea Confederation of Trade Unions) : "The current wage fails to provide for a family’s living expenses. At this level, continued employment will only incur a deficit."

The wage commission must unveil a finalized amount by August 5. This means deliberations must conclude by mid-July at the latest. But the proposed requests have only now been submitted, and due to gaping differences, several more rounds of talks will be necessary. Regarding another sticking point on whether to apply different minimum rates according to industry, the panel decided against the idea through a vote. Therefore a unilateral minimum wage will apply across all sectors next year.