South Korea's minimum wage for next year will rise at least 1.2% from this year, with a decision likely on June 9.
The Minimum Wage Commission said labor representatives proposed 11,500 won, an 11.4% increase from this year, while management representatives proposed 10,440 won, a 1.2% increase, as their fifth revised offers at the 12th plenary session held Monday at the government complex in Sejong. The commission consists of 27 members, with nine each representing labor, management and the public interest.
Each year, minimum wage deliberations proceed as labor and management representatives present their desired wage levels while narrowing the gap between the two sides. Based on the fifth revised offers, next year's minimum wage will be decided within a range of a 1.2% to 11.4% increase.
This year again, labor representatives, who had called for a high rate of increase, made larger concessions than management representatives. Labor representatives, who initially demanded a 16.3% increase, lowered their requested increase to 11.4%. Management representatives, who had sought a freeze, stepped back to a 1.2% increase. Labor and management were expected to present sixth revised offers on the day and further narrow the gap. At the commission's previous session, labor and management also concluded the meeting after presenting two revised offers.
Many observers expect that next year's minimum wage will likely be decided at the 13th plenary session to be held June 9. This is because the public interest members, who hold the key to minimum wage deliberations each year, may present a mediation range. When they judge that labor and management can no longer narrow the gap, the public interest members have used a mediation range to narrow the scope of revised offers.
Looking at this year's minimum wage deliberation process, the public interest members proposed a 1.8% to 4.1% increase as the mediation range at the 10th plenary session. This was because labor and management were unable to further narrow the gap, submitting 8.7% and 1.5% increase proposals, respectively, even in their eighth revised offers. After the mediation range was presented, labor and management presented two more revised offers before deciding the minimum wage by agreement.
The commission also signaled that deliberations had reached their final stage. Sung Jae-min, secretary of the public interest members, said in his opening remarks that day, "It is judged that labor and management have sufficiently shared their positions and grounds for judgment in the process of presenting revised minimum wage offers so far," adding, "Now is the time to translate the outcome of discussions into concrete figures."
