By Kang Seung-woo
Unions warned of strident action against the government Wednesday, after Prime Minister Lee Nak-yon endorsed amendments to the minimum wage act.
Under the revisions, regular bonuses exceeding 25 percent of the minimum wage and benefits such as lodging and transportation surpassing 7 percent will be included in the calculation of the basic wage. The revisions take effect next year.
The unions claim the revisions will reduce the effects of the minimum wage increase; while Lee said they were to protect small business owners at the same time as ensuring a minimum salary for low-income workers.
“The Cabinet meeting has passed the worst legislation that will backfire on the Moon Jae-in administration,” the Korean Confederation of Trade Unions (KCTU) said in a press conference held in front of Cheong Wa Dae after the endorsement. The more militant of the nation's two main umbrella unions said it will hold a members' meeting Saturday to vote on whether to hold a protest strike.
The KCTU is also exploring ways to take legal action, including a constitutional appeal,
Meanwhile 120 union members staged a candlelit rally, marching from the government complex to the presidential office.
In the lead up to the Cabinet meeting, the unions had urged President Moon to veto the revisions.
“President Moon refused to exercise his veto rights to scrap the bill, failing to make good on his election pledge to raise the minimum wage to 10,000 won per hour (by 2020),” the KCTU said, adding the government has become an enemy of workers.
The Federation of Korean Trade Unions (FKTU) also staged a rally in front of the government complex Tuesday.
“We plan to continue protesting the amendments to the law to get the minimum wage system back on track.”
The harsh opposition signals a rough path ahead for the Moon administration as it seeks to solve labor issues through trilateral talks with unions and business representatives.
Frustrated by the passage of the bill, the two umbrella unions decided to quit the government's Minimum Wage Commission, responsible for fixing next year's figure through a three-way discussion.
Currently, basic wage-earners receive 1.57 million won ($1,460) per month if the work a 40-hour week, after the Moon administration raised the minimum wage by 16.4 percent to 7,530 won for this year _ the biggest increase in two decades _ to boost private consumption and narrow the income gap.