Rejection of Proposal to Differentiate Minimum Wage by Industry: Analysis of Votes and Implications

2023-06-22 09:41:00

Rejected by ’11 votes for, 15 votes against’

It seems that 7 out of 9 public interest members voted against it.

At the 7th plenary meeting held in the meeting room of the Minimum Wage Committee in the Government Complex Sejong on the afternoon of the 22nd, as worker member Ki-seop Ryu (right), secretary-general of the Federation of Korean Trade Unions, began to speak, Ki-jeong Ryu (left), executive director of the Korea Employers Federation, and other employers members applied the minimum wage separately. He is holding up a sign emphasizing the necessity. yunhap news

The proposal to differentiate the minimum wage by industry was rejected after a vote by the Minimum Wage Committee. Next year, a single minimum wage will be applied regardless of industry. President Seok-Yeol Yoon mentioned the need for differential minimum wage by industry during his presidential campaign.

At the 7th plenary meeting held at the Sejong Government Complex on the 22nd, the Minimum Wage Committee continued to discuss the application of differential wages by industry, but the disagreement between labor and management could not be narrowed, so a vote was taken. Eight workers’ members, nine employers’ members, and nine public interest members participated in the vote. Kim Joon-yeong, secretary general of the Federation of Korean Trade Unions, was in custody, so the number of workers’ members was short.

It was rejected with 11 votes in favor and 15 votes against. Assuming that all 8 workers’ members voted against and all 9 employers’ members voted in favor, it is estimated that 7 out of 9 public interest members voted against.

According to the Minimum Wage Act, the minimum wage can be determined separately for each type of business, but differential application was made only once in 1988, when the minimum wage was first applied.

During the deliberation process this year, the user members insisted on applying an amount lower than the national minimum wage to three industries with weak solvency: convenience stores, taxi transportation, and food and lodging. Workers’ representatives objected to discrimination by industry, citing the stigma effect of being a low-wage industry and the lack of statistical data. In addition, more than half of the member countries of the International Labor Organization (ILO) that have introduced the statutory minimum wage maintain a ‘single minimum wage’, and ‘top-down sectoral discrimination’, which separately determines industries that receive lower than the statutory minimum wage, is at least not found in ‘advanced countries’. The logic is also difficult.

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What is noteworthy in the process of discussing differences by industry this year is that the gender wage gap was dealt with as an issue. Park Hee-eun, vice chairman of the Korean Confederation of Trade Unions, pointed out at the 6th plenary meeting on the 20th, “If differential application by industry is applied, the impact on women will be more negative and the gender wage gap can widen.” As there are many women in low-wage industries, the intention is that female workers may be exposed to ‘triple discrimination’ of discrimination by industry, discrimination in employment type, and gender discrimination.

Prior to the plenary meeting, the labor world held a press conference and presented the initial demand for next year’s minimum wage at 12,210 won (2.55 million won per month), a 26.9% increase from this year. This is an increase of 210 won from the 12,000 won that the labor community disclosed in early April, before the minimum wage review began. The workers’ committee members said, “Real wages have been cut due to inflation that has continued since the second half of last year. “The minimum wage must be raised more drastically than ever before,” he said.

The management community did not disclose the initial request. This is because the disclosure of the proposal was delayed in order to make the discussion on differential application by industry as long as possible. The business world is highly likely to present a freeze plan this year as well.

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