Labor and management continue to clash over improvements to the minimum wage system
The controversy over the minimum wage, and the issues of applying it to subcontracted workers and differentiated application by industry, are reignited Take a look at the differences between labor and management positions and the upcoming discussions on system improvements
Even after the Minimum Wage Commission decided next year’s minimum wage at 10,700 won, conflict between labor and management is expected to continue. As public interest members recommended to the government that the system be improved regarding the application of the minimum wage to workers paid on a contract basis and the issue of differentiated application by industry, discussion surrounding the two contentious issues has been rekindled.
The labor side has argued that workers paid per task, such as delivery riders and parcel delivery workers, should also be protected by the minimum wage. The management side, on the other hand, has opposed this, saying that such an approach does not sufficiently reflect differences in industries and work arrangements.
Another issue is whether the minimum wage should be applied differently by industry. Small and mediumsized businesses and the management side believe that labor cost burdens in smallscale sectors such as lodging and food service should be taken into account, while the labor side counters that applying the same minimum wage is necessary to uphold the principle of equality. If the government’s discussions on system reform gather momentum, the gap between the two sides’ positions is likely to continue.