2023-06-26 05:53:29
▲Last year, an unmanned and manned guide was installed at a convenience store in downtown Seoul. yunhap news
[에너지경제신문 김아름 기자] # Even now, night sales are low, but the headquarters of the convenience store cannot let go of the existing 24-hour operating policy, so only labor costs are incurred without sales. As a result, most store owners work directly for 18 hours a day to reduce labor costs. If the minimum wage exceeds 10,000 won, the only outcome would be to close the business or die from overwork. The government and convenience store headquarters should come up with separate measures for the minimum wage increase. (Convenience store owner A in Bucheon, Gyeonggi-do)
# If you raise the hourly wage, you have no choice but to apply the increase to the current service price. Ultimately, consumers will have to pay more. Given the economic recession, I think it’s better to keep the freeze for the time being to stabilize prices. (Mr. B, self-employed in Songdo, Incheon)
With the decision to apply the same minimum wage to all industries next year, the voice of resentment is growing among small business owners. They are in the position that if the hourly wage of 10,000 won has opened in a situation of extreme economic stagnation, it will be difficult to continue operating the business due to the burden of labor costs.
According to industry sources on the 26th, the Minimum Wage Committee will hold its 8th plenary meeting on the 27th at the Sejong Government Complex. At this meeting, the business world is expected to present a minimum wage demand. As far as is known, there is a high possibility that user council members representing the business world will request a freeze.
The resistance of the labor community is also formidable. The labor world is demanding 12,210 won per hour as the minimum wage for next year, 26.9% higher than this year (9,620 won).
As it is expected to be a sharp tug of war between the two sides, the minimum wage deliberation is expected to proceed in a way to narrow the gap over the initial demand presented by them. As a result, the 12,210 won demanded by the labor community is highly likely to exceed 10,000 won even if it is realistically difficult. This is because even if a 5% increase rate this year is applied to the current hourly wage (9620 won), it is equivalent to exceeding 10,000 won.
As a result, the self-employed are complaining regarding the burden of labor costs. This is because the company is already experiencing a severe economic recession due to high interest rates and high prices, and the management difficulties will intensify due to the increase in labor costs. They are in the position that they have no choice but to suspend business operations or reduce employment. Mr. Kim, who runs a catering business in Seongbuk-gu, Seoul, said, “There is no price that has not risen in rent, electricity, food, etc. At least, we are operating it tightly as a way to reduce labor costs, but if it rises further here, we have no choice but to switch to one person.” said.
Experts are also expressing concern that an increase in the minimum wage might lead to a contraction in employment. According to the report titled “The Impact of Minimum Wage Rise on Jobs (2023)” commissioned by the Federation of Korean Industries by Professor Choi Nam-seok of Chonbuk National University, if the minimum wage is raised from 9,620 won to 10,000 won, a minimum of 28,000 jobs will increase to a maximum of 60,000. It is predicted that 9,000 jobs will be lost. If the minimum wage is raised to 12,210 won (26.9 percent) as demanded by the labor community, the drop in jobs will increase from a minimum of 194,000 to a maximum of 470,000.
In particular, for small businesses (1 to 4 employees), if the minimum wage rises to 10,000 won, a maximum of 29,000 jobs will be lost. estimated to decrease.
Professor Choi emphasized, “Recently, small businesses are experiencing difficulties in reducing sales and increasing inventory due to the severe economic recession, so if the minimum wage is raised additionally, there is a concern that business difficulties will be aggravated.”
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