The Korea Herald

지나쌤

Unions take minimum wage row to ILO

By Korea Herald

Published : June 12, 2012 - 19:14

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Korea’s two largest labor groups filed a complaint with the International Labor Organization, accusing the government of breaching a global pact on minimum wages, officials of the two groups said Tuesday.

The Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, which together represent 1.5 million workers, claimed that the Korean government’s unilateral appointment of a third of the members of the board that sets the minimum wage resulted in a significant slowdown in wage increases.

The joint complaint was submitted Monday by KCTU president Kim Young-hoon and FKTU secretary general Han Kwang-ho to the ILO headquarters in Geneva, Switzerland, officials said.

“By appointing nine neutral members without any consultation with labor or management, the Korean government has violated the ILO Convention No. 131, which it signed in 2001,” the complaint read.

“The violation has threatened the livelihoods of 24 million minimum-wage earners in Korea.“

Comprised of an equal number of members representing labor, management and neutral figures, the council sets every June a minimum legal standard in wages for the next year in consideration of living costs. The current minimum wage is 4,580 won ($3.89) per hour.

This year’s process has stalled due to a boycott by the two labor organizations protesting the joining of those appointed by President Lee Myung-bak.

“The neutral members hold casting votes, as labor and management are represented equally. Since President Lee Myung-bak took office in 2008, the annual growth of the minimum wage averaged at 4.9 percent, down from a range of 10.6 percent to 12.5 percent during the previous administration,” the two bodies said.

The Labor Ministry, however, rejected the claim, saying the neutral figures were named in due procedure, recommended by the labor minister and then appointed by the president.

There is no article in domestic laws that say the government must consult with the labor or management on their appointment. The ILO treaty doesn’t require prior consultation either, it said.

The ILO is expected to review the complaint in an experts’ meeting in November before issuing a report around February next year.

By Lee Sun-young (milaya@heraldcorp.com)