Minimum Wage Commission to Have Sub-bodies

By Kim Hyun-bin

The government has decided to divide the minimum wage decision process into two, as part of reform plans to strengthen the decision-making process and minimize clashes between labor and management.

The Ministry of Employment and Labor announced the final version of the reform plan for the Minimum Wage Commission, Wednesday, following discussions and online surveys since disclosing the draft Jan.

7

The commission consists of business, labor, and government representatives as well as experts, and is in charge of deciding the following year's hourly minimum pay.

Under the reform measure, the commission will be split into two sub-bodies ― the range determination body which sets the upper and lower thresholds of a minimum wage hike, and the decision-making body that decides on the increase within the range.

The range determination body will consist of nine representatives. Labor, management and the government will recommend five members each for a total of 15, and they will trim down the number to nine by eliminating less-qualified ones.

The decision-making body will have 21 members, consisting of seven representatives each recommended by labor, management and the public sector Among the seven recommended by the public sector, four will be selected by the National Assembly and three by the government; while currently the government recommends all the public sector representatives.

The draft initially stated the decisive factors of the minimum wage would include employers' ability pay.

But the final version excluded it and instead the commission will consider the expected impact of the minimum wage hike economic and employment situations.

It followed criticism during experts' discussions on the issue that employers' payment ability was too subjective.

The labor sector also opposed it, saying the clause would make incapable employers' to face...