Members of the Minimum Wage Commission representing small business owners walked out during a meeting, saying "the minimum wage cannot be raised any further," as the panel deliberated on next year's minimum wage.
Employer members Keum Ji-sun and Lee Ki-jae left the meeting room at the Government Complex Sejong, where the 13th plenary session was held, at around 6:20 p.m. on the 9th. "The minimum wage industry classification hasn't even been settled, so how can we submit a higher increase proposal?" they said. "We will decide whether to attend the next meeting after discussion."
The Minimum Wage Commission is a deliberative body composed of 27 members, with nine each from employer members (the business community), worker members (labor community), and public interest members (university professors and others). Employer members are composed of individuals recommended by economic organizations, and Keum Ji-sun and Lee Ki-jae are individuals recommended by the Korea Federation of Micro Enterprise.
The two members walked out because public interest members had requested a ninth revised proposal to further narrow the wage gap between labor and management. This ran counter to the position of both sides, who had intended to submit only their seventh and eighth revised proposals that day. In the seventh revised proposal, employer members demanded a 1.6% increase over this year's minimum wage, and in the eighth revised proposal, a 1.9% increase. In the ninth revised proposal, they conceded up to a 2% increase.
In particular, the two members representing small business owners argued that the increase had exceeded a level that small business owners could accept. The Korea Federation of Micro Enterprise has been demanding that next year's minimum wage be frozen. However, compared with the worker members' revised proposals, the concessions made by the employer members are smaller. Worker members, who had demanded a 10% increase in the seventh revised proposal, retreated to an 8.7% increase in the ninth revised proposal.
Next year's minimum wage is expected to be determined at the 14th plenary session on the 14th. If no agreement is reached between labor and management, it will be decided through a vote on the final proposals from both sides or a mediation proposal from the public interest members. Attention is focused on whether the two members, who revealed conflict among the employer members, will return to the meeting. "Small business owners hold the position that it is difficult to raise the minimum wage any further," said employer member Ryu Ki-jeong. "I hope both members will return to the next meeting."
