Feud over minimum wage grows deeper

Representatives of employers and employees have failed to reach an agreement in negotiating the minimum wage for next year.

An additional meeting was to take place Thursday, the deadline for the accord, but compromise was unlikely between employers calling for a 30 won raise from this year’s 4,320 won ($4) per hour and workers demanding a 1,000 won hike. They were expected to vote on the third party’s arbitrary proposal around midnight to wrap up the case.

At a minimum wage committee meeting hosted by the Economic and Social Development Commission under the Ministry of Employment and Labor on Wednesday, both sides refused to accept a range of 4,445 won to 4,790 won per hour suggested by government officials and some field experts.

Employers initially called for a wage freeze, citing volatile global economy and soaring costs. Workers claimed that the amount does not even reflect the government’s guideline on the minimum cost of living, which was set at 143 million won a month last year for a family of four.

The two sides seemed to have narrowed their differences to a 125 won raise presented by the employers and a 467 won hike proposed by workers but failed to agree. Delegates of the Korean Confederation of Trade Unions, the more militant of two umbrella unions, walked out of the room to axe the negotiation.

The minimum wage has always been a hot issue here since it has considerable influence on the overall employment market and domestic economy. Most management-labor wage negotiations are based on the minimum wage increase rate.

Last year, after an intense tug-of-war, the hourly minimum wage was set at 4,320 won, up about 5.1 percent rise from the previous year’s 4,110 won. The amount applies to all workplaces hiring more than one employee. Those who pay below the minimum wage face penalties of either up to three-year imprisonment or up to 20 million won fine.

“It is typical that proposals by the two sides show a wide gap when it comes to the minimum wage,” a member of the committee said. “This year, the employers drew the line to a 0.7 percent raise, while the workers demand a 23.1 percent hike. It has never been easy to mediate, but this year it is especially harder.”

Labor unions and civic groups held a rally for two consecutive days in Seoul, calling for both sides to reflect actual living expenses of ordinary people in the new minimum wage and make a “reasonable decision.”

“We hope the delegates understand the gravity of their duties,” a union member said.

By Bae Ji-sook (baejisook@heraldcorp.com)