Increase in taxi fare benefits operators, not drivers

The taxi fare hike in Seoul City appears to be veering off from its original purpose of improving working conditions for drivers as more complaints are filed about employers snatching the benefits.

Seoul City received a number of reports from cab drivers about their firms violations of wage regulations despite the capital’s efforts to crack down on such practices, officials said Thursday.

A total of 63 cases of cab firms violating wage rules have been reported via the city’s new reporting system since late last month. The new website was launched to allow taxi drivers to anonymously file complaints.

Violations of daily pay rules made up the bulk of reported complaints. Under the Korean taxi system, drivers are required to share a certain amount of their daily earnings with their firms. The average amount is around 130,000 won ($120) a day.

According to the public guidelines for the wage agreement drafted last year, taxi companies are not allowed to raise the daily required pay by more than 25,000 won. Some, however, were found to have asked drivers to pay over the set amount.

The guidelines also recommend taxi companies at least provide a raise of 229,000 won in monthly wage as well as 35 liters of gas a day.

The measures taken last year were intended to improve drivers’ work conditions. The city approved the increase of the basic rate by 600 won to 3,000 won and released a package of measures including the new guidelines.

Other complaints included inadequate supply of gas and unfair cuts in work hours. Some firms did not even submit mutual contracts signed by drivers and companies to the city.

The city will slap a fine of up to 5 million won on companies if they fail to submit the mutually signed contracts by a new deadline, officials said, adding that they will conduct a one-month special monitoring on taxi operators starting Feb. 6.



By Lee Hyun-jeong

(rene@heraldcorp.com)