Kwon Soon-won, chair of the Minimum Wage Commission, presides over the fifth plenary meeting at the Government Sejong Center on June 11. [Photo=Yonhap News]
The Minimum Wage Commission (MWC) engaged in heated discussions on June 11 regarding the potential expansion of minimum wage applications for special types of workers, including delivery riders and parcel delivery drivers.
During the fifth plenary meeting held at the Government Sejong Center, the commission deliberated on the application of minimum wage for contract workers.
Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions (KCTU), stated in his opening remarks, "The results of the Ministry of Employment and Labor's survey confirm that expanding the application of minimum wage is indeed feasible. Now, it is not a matter of whether to apply it, but rather how to establish the criteria for its calculation."
He argued that while there may be varying degrees of worker status among special types of workers and platform laborers, their dependency on employers and economic vulnerability is significantly high. Ryu emphasized that the MWC should not be confined to legal interpretations and should take a proactive approach.
"Minimum wage is a preemptive system that sets future standards," he noted, pointing out that the current labor market has transformed into a complex structure that traditional employment relationships cannot adequately capture, while the minimum wage system has failed to keep pace.
Ryu highlighted that contract workers, platform workers, and freelancers are exposed to various social risks, urging the MWC to rectify the distorted low-wage structure through its social decisions. He warned that if the focus remains solely on legal interpretations, the group of low-wage workers, which numbers around 9 million, could be left outside the minimum wage system.
Lee Mi-sun, Deputy Chair of the Korean Federation of Trade Unions (KFTU), criticized the ongoing discussions, stating, "Even after 40 years since the enactment of the Minimum Wage Act, discussions are still hindered by the argument that these workers are not classified as laborers under the Labor Standards Act."
He pointed out that despite the Labor Minister's request for a separate decision on minimum wage for contract workers and the results of the survey, discussions have reverted to square one. Lee called for the commission to respond to the demands of workers seeking minimum wage guarantees.
Conversely, employer representatives reiterated the legal and institutional limitations surrounding the discussions on minimum wage application for contract workers.
Ryu Gi-jeong, Executive Director of the Korea Employers Federation, stated, "The MWC should limit its discussions to 'contract wage workers' as defined by the Minimum Wage Act. This research project has focused on special types of workers, which diverges from the original intent of the discussions."
He specifically pointed out that there are limitations in objectivity and reliability regarding the research entity and data collection methods, arguing that applying minimum wage preemptively to contract workers is difficult based on the available evidence.
Ryu also noted that many small and medium-sized enterprises and small business owners are already struggling to meet the current minimum wage, suggesting that discussions should focus on differentiated applications by industry rather than expanding contract worker applications.
Yang Ok-seok, head of the Human Resources Policy Division at the Korea Federation of Small and Medium Businesses, emphasized that many small business owners earn only about 2 million won a month despite working 16-hour days, stating that restoring the survival rights of small businesses should take precedence over expanding minimum wage applications.
As the MWC held its third meeting on the application of minimum wage for contract workers, attention is now on how the public interest committee will outline its future deliberation direction. Seong Jae-min, acting director of the Korea Labor Institute and secretary of the public interest committee, remarked, "It is time to seek a more responsible direction based on the accumulated discussions regarding areas that require judgment."
However, with both labor and management remaining at an impasse, there is speculation that the public interest committee may ultimately determine the direction of future deliberations. In the MWC, if labor and management fail to reach an agreement, the decisions of the public interest committee effectively dictate the outcome.
During the fifth plenary meeting held at the Government Sejong Center, the commission deliberated on the application of minimum wage for contract workers.
Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions (KCTU), stated in his opening remarks, "The results of the Ministry of Employment and Labor's survey confirm that expanding the application of minimum wage is indeed feasible. Now, it is not a matter of whether to apply it, but rather how to establish the criteria for its calculation."
He argued that while there may be varying degrees of worker status among special types of workers and platform laborers, their dependency on employers and economic vulnerability is significantly high. Ryu emphasized that the MWC should not be confined to legal interpretations and should take a proactive approach.
"Minimum wage is a preemptive system that sets future standards," he noted, pointing out that the current labor market has transformed into a complex structure that traditional employment relationships cannot adequately capture, while the minimum wage system has failed to keep pace.
Ryu highlighted that contract workers, platform workers, and freelancers are exposed to various social risks, urging the MWC to rectify the distorted low-wage structure through its social decisions. He warned that if the focus remains solely on legal interpretations, the group of low-wage workers, which numbers around 9 million, could be left outside the minimum wage system.
Lee Mi-sun, Deputy Chair of the Korean Federation of Trade Unions (KFTU), criticized the ongoing discussions, stating, "Even after 40 years since the enactment of the Minimum Wage Act, discussions are still hindered by the argument that these workers are not classified as laborers under the Labor Standards Act."
He pointed out that despite the Labor Minister's request for a separate decision on minimum wage for contract workers and the results of the survey, discussions have reverted to square one. Lee called for the commission to respond to the demands of workers seeking minimum wage guarantees.
Conversely, employer representatives reiterated the legal and institutional limitations surrounding the discussions on minimum wage application for contract workers.
Ryu Gi-jeong, Executive Director of the Korea Employers Federation, stated, "The MWC should limit its discussions to 'contract wage workers' as defined by the Minimum Wage Act. This research project has focused on special types of workers, which diverges from the original intent of the discussions."
He specifically pointed out that there are limitations in objectivity and reliability regarding the research entity and data collection methods, arguing that applying minimum wage preemptively to contract workers is difficult based on the available evidence.
Ryu also noted that many small and medium-sized enterprises and small business owners are already struggling to meet the current minimum wage, suggesting that discussions should focus on differentiated applications by industry rather than expanding contract worker applications.
Yang Ok-seok, head of the Human Resources Policy Division at the Korea Federation of Small and Medium Businesses, emphasized that many small business owners earn only about 2 million won a month despite working 16-hour days, stating that restoring the survival rights of small businesses should take precedence over expanding minimum wage applications.
As the MWC held its third meeting on the application of minimum wage for contract workers, attention is now on how the public interest committee will outline its future deliberation direction. Seong Jae-min, acting director of the Korea Labor Institute and secretary of the public interest committee, remarked, "It is time to seek a more responsible direction based on the accumulated discussions regarding areas that require judgment."
However, with both labor and management remaining at an impasse, there is speculation that the public interest committee may ultimately determine the direction of future deliberations. In the MWC, if labor and management fail to reach an agreement, the decisions of the public interest committee effectively dictate the outcome.
* This article has been translated by AI.
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