[THE INVESTOR] A June 28 deadline for deciding next year’s minimum wage is unlikely to be met as labor groups and business representatives have failed to reach a consensus.
The Minimum Wage Council -- consisting of business and labor representatives and government officials -- has held plenary sessions for three months since March 30 to set next year’s minimum wage.
However, the parties were unable to narrow down their differences even at their last session on June 27, local news reported.
Labor representatives have been demanding that the minimum wage be raised to 10,000 won (US$ 8.52) per hour from this year’s 6,030 won, reasoning that major countries around the world, including the US, Britain, Japan and Russia, have increased the minimum wage as well.
However, the business bloc demanded to keep the minimum wage at the current rate, citing the industry-wide restructuring and prolonged economic slump here and abroad.
Parties are also locking horns over the unit of minimum pay. The labor parties want to stipulate monthly wages in the employment contract, as well as the hourly wage, to protect workers’ right to be paid for 48 hours of labor when working 40 hours a week -- ensuring one paid holiday for five working days.
But the business sector is arguing against the unit stipulation, saying the extra pay is unrealistic in many industries.
By Ahn Sung-mi (
sahn@heraldcorp.com)