Labor and business representatives are in final talks to determine South Korea’s minimum wage for 2021, with this year’s discussions more heated than ever due to the coronavirus fallout that has taken a big toll on employers and employees alike.

The 27-member Minimum Wage Commission – consisting of nine representatives each from labor, business and government – will hold its sixth plenary session on Thursday to finalize next year’s minimum wage rate.

The 2020 minimum wage stands at 8,590 won ($7.2) per hour, up 2.9 percent from the previous year. Wages were hiked 16.4 percent in 2018 and 10.9 percent in 2019 under President Moon Jae-in’s pledge to raise the minimum hourly wage to 10,000 won during his five-year term.

Labor representatives are calling for a 16.4 percent raise, which would bring next year’s minimum wage to 10,000 won. The business community is pushing for a 1.2 percent cut of 8,410 won.

Laborers argue that wages need to be raised to support low-income workers who have been especially hard hit by the pandemic. Businesses contend that their operations have also been severely impacted by the outbreak, forcing them to either slash jobs or freeze hiring.

The plenary meeting was originally scheduled for July 7, but was slightly pushed back due to what insiders say were internal disagreements within the business group.

The Thursday meeting could be an all-nighter. The initial deadline for the talks is July 13, but discussions would have to be wrapped up no later than mid-July as the labor ministry needs to announce next year’s minimum wage by August 5.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]