The Minimum Wage Commission was expected to vote Thursday on whether to adopt differential minimum wages for each industry for the first time in nearly 40 years amid stiff objections from the labor sector.
The management side of the tripartite commission, which also represents labor and the general public, has been pushing for differentiated minimum wages across various sectors, citing economic challenges faced by small business owners and the self-employed.
Since differentiated minimum wages were adopted for the first time ever in 1988, the same minimum wage has been set annually across all industrial sectors for the following 36 years until this year, when the rate stood at 9,860 won (US$7.11).
The 27-member commission, currently in the process of determining the 2025 minimum wage, was scheduled to hold a plenary session Thursday and vote on whether to adopt differentiated minimum wages for next year.
The labor sector is fiercely opposing differential minimum wages, arguing they completely go against th
e objective of the minimum wage system to guarantee minimum living standards for workers.
They also contend that managerial challenges faced by small and self-employed businesses often stem from high rents and excessive competition, rather than high wages.
A member of the management side has countered that the minimum wage has been increased enough to reach 60 percent of the median income around 2000, making it unnecessary to set the minimum wage identically across different sectors.
A vote result in favor of the management side is likely to deal a heavy blow to the proceedings to set the 2025 minimum wage, with the labor sector remaining uncompromising in their stance.
The legal deadline for determining the 2025 minimum wage was Thursday, but the commission often goes beyond the deadline due to wide gaps of opinion between the labor and management representatives.
Another point of focus for the minimum wage setting for next year is whether the rate will surpass 10,000 won for the first time.
Source: Y
onhap News Agency