Business lobby asks gov't to cut minimum wage of migrant shipbuilding workers

The Korea Times

The Korea Times

Business

Wed, November 29, 2023 | 04:12

Business lobby asks gov't to cut minimum wage of migrant shipbuilding workers

Posted : 2023-06-29 16:50

Updated : 2023-06-30 14:15

A member of the Korean Metal Workers' Union (KMWU) distributes newsletters to migrant workers at Hyundai Samho Heavy Industries in Mokpo, South Jeolla Province, in this May file photo. Courtesy of KMWU

By Park Jae-hyuk

The Korea Enterprises Federation (KEF) recently asked the Office for Government Policy Coordination and the Ministry of Economy and Finance to lower the minimum wage for migrant shipbuilding workers who hold E-7 visas, the business lobby group said Thursday.

The request was made despite a lingering shortage of workers in domestic shipyards.

Under the current law, E-7 visa holders are guaranteed base wages equivalent to 80 percent of the previous year's gross national income (GNI) per capita. They can therefore earn around 2.7 million won ($2,050) per month.

In order to help make foreign labor more affordable for subcontractors of large shipbuilding companies, however, the Ministry of Justice took a temporary measure earlier this year, allowing small firms and startups, as well as medium-sized enterprises not located in the Seoul metropolitan area, to pay a minimum of 70 percent of the previous year's GNI per capita to employees holding the E-7 visa.

This means that E-7 visa holders working for such companies will receive a monthly base salary of around 2.5 million won.

Despite this policy, which will be in effect for the next three years, the subcontractors have urged the government to take more drastic measures so as to allow them to pay non-Korean workers even less. They claim foreign workers can still earn more pay than their Korean peers if they work overtime.

The KEF made the request on behalf of the subcontractors and also demanded a further increase in the quota for E-7 visa holders.

In addition, it asked the government to allow large manufacturers and plant constructors to hire migrant workers holding E-9 visas. Under the current law, the employment of E-9 visa holders is only allowed for manufacturers with less than 300 employees or those possessing less than 8 billion won in capital.

For logistics services companies, the KEF also urged the government to allow the use of foreign workers for categorizing parcels and maintaining vehicles. The current law only allows logistics firms to use foreigners in loading and unloading at logistics centers.

"For Korea to overcome its economic difficulties, the government needs to ease various regulations that have impeded corporate management," said Lim Young-tae, head of KEF's employment policy team.

However, this request has resulted in concerns about the possibility of lower wages forcing foreign shipbuilding workers to work more overtime, instead of having enough downtime.

"The accumulation of fatigue could make migrant workers more vulnerable to the risk of industrial accidents," said Kim Hyun-mee, a professor at Yonsei University Department of Anthropology, who has studied migrant workers.

pjh@koreatimes.co.kr