Minister Kim Moon-soo held the first national heads of institutions meeting of the year on the 6th and discussed major labor issues such as wage arrears reduction and standard wages.
The Ministry of Employment and Labor noted that it held a 'national heads of institutions meeting' at the Seoul Regional Employment and Labor Office at 2 p.m. that day.
The meeting was attended by Minister Kim Moon-soo, Vice Minister Kim Min-seok, as well as key directors and regional heads of employment and labor offices across the country.
During the meeting, Minister Kim said, 'Last year, a record 1.6697 trillion won in unpaid wages was resolved through wage liquidation activities, but there still remains 375.1 billion won in unpaid wages,' and he asked for stronger management of wage arrears.
According to the ministry, the total amount of wage arrears that occurred last year was 2.048 trillion won, a 14.6% increase compared to the previous year (1.7845 trillion won), influenced by economic contraction primarily in the construction sector and group unpaid wages from some large companies such as DAEYU and Qoo10.
However, the Ministry of Employment and Labor stated that the amount of unpaid wages resolved this year is the largest on record and has increased by 258.5 billion won from the previous year. The resolution rate also rose to 81.7%, up 2.6 percentage points from last year's 79.1%. This is the highest level, excluding the COVID-19 periods in 2021 and 2022.
Also announced at the meeting was a revised 'Guideline for Labor-Management Guidance on Standard Wages.'
The revised guideline was created to address the Supreme Court's ruling from December of last year, which changed the legal principles established by the 2013 Supreme Court ruling to enhance understanding in the field and minimize confusion. Last year's Supreme Court ruling aimed to widen the scope of standard wages by excluding the fixed nature requirement from the existing criteria for determining standard wages, which are compensation for prescribed labor, regularity, uniformity, and fixity.
The ministry noted that it established the revised guidelines in reflection of the Supreme Court decisions regarding wage lawsuits filed by Hyundai Motor workers last December and SeAH Besteel workers in January this year.
Minister Kim said, 'Labor and management must cooperate to use this as an opportunity to improve the complex wage structure or seniority-based wage system to fit the changing labor market.'
The ministry plans to ensure that the revised guidelines are utilized in the field as labor-management discussions on wages and collective agreements are expected to intensify. It will also provide consulting to workplaces that aim to improve the wage system.
Meanwhile, the ministry evaluated last year's labor inspection performance at the meeting and finalized this year's site inspection plan, which will be announced soon.