FKTU at Odds with KCTU over Next Year's Minimum Wage
The Korean Confederation of Trade Unions (KCTU) made a sudden announcement last week to demand a 25.4 percent increase in minimum wage. On June 24, the Federation of Korean Trade Unions (FKTU) held a news conference to express regret at the announcement.
“The two labor union groups and civic organizations have made minimum wage-related demands together, and yet the KCTU broke the custom on June 19,” said the FKTU, adding, “Minimum wage adjustment is a very important issue affecting the livelihood of millions of people, and we will work on an adjustment plan that can be accepted by the general public.”
This year, the minimum wage was raised by 2.9 percent to 8,590 won per hour after a 16.4 percent increase in 2018 and a 10.9 percent increase in 2019. Enterprises and employers are currently calling for a minimum wage cut or freeze in relation to COVID-19. The Minimum Wage Commission of the Ministry of Employment and Labor held its first meeting on next year’s minimum wage on June 11 and the KCTU made the demand for 10,770 won per hour on June 19.
According to the FKTU, this year’s overall wage increase is 3.9 percent to 6.6 percent and next year’s minimum wage needs to be increased by more than that for any reduction in wealth divide.