The minimum wage in 2022 is 9,160 won, 5.1%↑… Failed to ‘10,000 won’ of the written promise (Comprehensive 2)

Minimum Wage Committee, 4 KCTU and 9 Employers Committee decided to leave the labor union
Public interest member voted on a single bill + 5 members of the Korean Federation of Trade Unions participated

At 0:04 am on the 13th, members of the Korea Federation of Trade Unions (FKTU), who accounted for 5 out of 9 workers, hold a press conference. Third from the left is Secretary-General Lee Dong-ho. (Photo = Reporter Chae-Seok Moon)

湲 蹂肄

[세종=아시아경제 문채석 기자] The minimum wage for next year, the last minimum wage of the Moon Jae-in administration, was set at 9,160 won per hour. This is an increase of 5.1% (440 won) from this year’s 8,720 won. The Moon administration’s promise of a “minimum wage of 10,000 won within tenure” was thwarted.

At the 9th plenary meeting of the Minimum Wage Committee on the 12th, the minimum wage for next year was decided. It was the result of a vote on the proposal proposed by the public interest members in charge of arbitration. The result of the vote was 13 in favor and 10 abstentions.

The increase rate of 5.1% is the result of adding 1.8% of the projected inflation rate to the expected economic growth rate of 4.0% this year, and then subtracting the employment growth rate of 0.7%, public interest members explained. The economic growth rate of 4.0% was derived by combining the forecast for the economic policy direction for the second half of the year announced by the Ministry of Strategy and Finance on the 28th of last month and the forecasts of the Bank of Korea and the Korea Development Institute (KDI).

At 11:19 pm that day, four worker members of the National Federation of Trade Unions (KCTU) and all nine employer members at 11:41 did not agree with the public interest committee and left the meeting room. Five workers and members of the public interest committee from the Korean Federation of Trade Unions (FKTU) remained in their seats and voted on the public interest bill.

Public interest committee member, raise section → present a single plan… The revolving discussion ‘knot’
Nine employers' members speak at the 9th plenary session of the Minimum Wage Committee held at the government complex in Sejong on the 12th.  4th from the left is Ki-Jeong Ryu, executive director of the Korea Employers Federation (KyeongChong).

Nine employers’ members speak at the 9th plenary session of the Minimum Wage Committee held at the government complex in Sejong on the 12th. 4th from the left is Ki-Jeong Ryu, executive director of the Korea Employers Federation (KyeongChong).

湲 蹂肄

At the meeting that day, the labor community wrote 10,000 won (14.7% increase) as its final proposal. Business circles submitted 8,850 won (1.5%), which is close to freezing. Although it was narrower than 1,700 won at the 8th plenary meeting on the 10th, the gap between labor and management was still 1,150 won.

The members of the public interest saw that it was impossible to vote as it is and suggested a deliberation promotion section of 9030 to 9300 won (3.6 to 6.7%). It is interpreted as a result that it is difficult to see that it is biased to one side. In other words, it could be interpreted that both sides of the labor and management were dissatisfied.

Actual employer committee members protested that they could not agree to a ‘minimum 3.6%’ increase, which is higher than the freeze. The labor community also countered that the ‘up to 6.7%’ increase was not a reasonable increase considering the reform of the minimum wage inclusion range. In the end, the public interest members came up with a single bill of public interest amid opposition from labor and management.

勞 “Lack of impression”…使 “Labor circles and members of the public interest, take responsibility for side effects”
Park Hee-eun, vice chairman of the National Federation of Trade Unions (KCTU), left his seat and held a press conference during the 9th plenary session of the Minimum Wage Committee held at the government complex in Sejong on the 12th at 11:19 pm (Photo = Moon Chae-seok) reporter)

Park Hee-eun, vice chairman of the National Federation of Trade Unions (KCTU), left his seat and held a press conference during the 9th plenary session of the Minimum Wage Committee held at the government complex in Sejong on the 12th at 11:19 pm (Photo = Moon Chae-seok) reporter)

湲 蹂肄

The labor and management circles expressed their dissatisfaction with the minimum wage decision. Park Hee-eun, vice chairman of the KCTU, met with reporters after leaving the conference hall and criticized, “The Moon administration’s pledge of 10,000 won was a social agreement to secure a safety net for low-wage workers, but even in the last deliberation this year, no proposals approaching 10,000 won came out.” He added, “I have been tortured with hope for low-wage workers,” adding, “The voices of low-wage workers are still being ignored.”

Lee Dong-ho, secretary general of the Korea Federation of Trade Unions, said, “Even though we have tried to raise the final increase even a little, the level of this increase is still insufficient to improve the lives of minimum-wage workers.” Jung Moon-joo, head of the policy division of the Korea Federation of Trade Unions, also explained, “There was no section to negotiate any more,” and “I made this choice with tears in my eyes, thinking of the minimum wage worker because I had no choice if I didn’t get this proposal.”

The business community expressed dissatisfaction that the labor community and public interest members should be held responsible for the side effects of the minimum wage increase. Nine employers’ committee members argued, “The responsibility for all problems arising from the determination of the minimum wage in the future should be held by the labor community, who continued to fight selfishly while ignoring the economic reality, and the public interest member who sympathized with them.”


Sejong = Reporter Moon Chae-seok [email protected]


Source: 아시아경제신문 실시간 속보 by www.asiae.co.kr.

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