The 8th full meeting of the Minimum Wage Commission held on the 4th was downgraded to a half meeting due to a notice of absence from the management sector. Concerns are growing as discussions on the extent of the wage increase have not progressed, raising worries about whether labor and management can narrow their differences within the deadline.
On this day, the meeting was attended only by 18 labor and public interest commissioners, excluding 9 user commissioners. At the previous 7th meeting, the “Application of Division by Industry” was ultimately rejected, but the issue arose from the physical interference by labor representatives during the voting process. Some labor commissioners from the Korean Confederation of Trade Unions (KCTU) confiscated the batons and tore up ballot papers, obstructing the voting process. In response, the user commissioners announced on the 3rd that they decided not to participate in the next meeting on the grounds of “illegal and anti-democratic behavior”.
The labor side expressed regret. Ryu Ki-seob, the general secretary of the KCTU, expressed regret in his speech during the 8th meeting, stating that while he understands the urgency of the actions of some labor commissioners during the voting process, he regrets the excessive actions. He also hoped for a prompt return considering the minimum wage workers who are looking forward to the decision on next year’s minimum wage. Im Mi-sun, the deputy chief of the KCTU, also stated that she regrets the incidents during the voting.
The public interest commissioners emphasized that they cannot tolerate any physical obstruction of decision-making or undermining of democratic procedures, although they acknowledged concerns that the voting process may have been influenced. Professor Kwon Soon-won of Sookmyung Women’s University’s School of Business Administration stated that the public interest commissioners were not affected by the obstructive actions of some labor commissioners and will not be influenced in the future.
The meeting ended in an hour and a half due to the absence of the management side, and the initial submission of next year’s proposed minimum wage, which was expected to be announced, was not made.
There is a significant disparity between labor and management regarding the wage increase. Although the initial proposal has not yet been made, it is expected that the labor sector will propose around 12,600 won per hour considering factors such as rising prices and declining real wages. On the other hand, the management sector is expected to demand a freeze at the current rate of 9,860 won, considering the difficulties faced by small businesses. If this continues, the wage gap proposed by labor and management would be ‘2,740 won,’ exceeding the gap in the initial proposals from last year (2,590 won).
The issue lies in the urgent deadline. The statutory review deadline passed a week ago on the 27th of last month. Compared to last year, which recorded the longest deliberation period of ‘110’ days, the situation is not favorable. This is because the Minimum Wage Commission this year started its first meeting on May 21 due to coincide with the timing of member replacements, which is about a month later than when the 1st plenary meeting of the Commission was held on April 18 last year. To comply with the statutory deadline for announcing the minimum wage next year on August 5, the minimum wage must be determined by mid-July.
However, it is expected that the user commissioners’ boycott will not continue for long. According to Article 17, Paragraph 4 of the Minimum Wage Act, when making significant decisions, one-third of labor and user commissioners must be present. Failure to attend without valid reasons after being requested to attend twice or more can be considered as waiving the voting rights, allowing decisions to be made. The user commissioners, who requested anonymity, stated that “internal opinions are divided, but there is not much time left for discussion. We are making efforts for a swift return.”