The Minimum Wage Commission will hold its second plenary session to decide next year's minimum wage. At the first plenary session, the Korean Confederation of Trade Unions (KCTU), which is taking part as labor commissioners, walked out, signaling disruption.
According to government ministries on the 25th, the Minimum Wage Commission will hold the second plenary session at 3 p.m. on the 26th at the Government Complex Sejong. The commission consists of 27 members: nine each from labor, management, and public interest commissioners.
At the first meeting, labor groups argued for a sharp increase in the minimum wage, while business groups emphasized a cautious approach. This year's minimum wage is 10,320 won per hour, up 2.9% (290 won) from the previous year. Excluding 1998, when the increase was limited to 2.7% due to the aftermath of the International Monetary Fund (IMF) foreign exchange crisis, it is the lowest increase on record.
The issue of applying different minimum wages by industry is also expected to be discussed. Management argues that, at least for some vulnerable sectors such as food and lodging or taxi transportation, the minimum wage should be applied differentially to ease small business owners' wage burdens.
Labor groups, on the other hand, express opposition, saying that differential application of the minimum wage could undermine the fundamental purpose of the system, which is to protect workers.
Whether the minimum wage will apply to contract-for-service workers will also be addressed for the first time this year. Contract-for-service workers are those who are paid according to performance under a contract, with platform workers such as delivery riders and substitute drivers being representative.
Under current law, to be protected by the Labor Standards Act, one must be recognized as a "worker," but these individuals are classified as "business operators," and have thus been excluded from minimum wage coverage. As there was an official request from the Minister this year, discussions are expected to gain momentum.
The statutory deadline for deliberating the minimum wage is within 90 days from the date of the Minister of Employment and Labor's request for deliberation, and this year it is known to be the end of June.