FKTU to demand wage increase while continuing labor strife against the government regarding ordinary wage
On 13th February, the FKTU held its first executive officers’ meeting after the election of the new leadership. Various issues were discussed at the meeting, including composition of tripartite representatives’ meeting at the Environment & Labor Committee (ELC), strike plans, and wage increase rates for 2014.
The FKTU is seeking to resolve issues regarding wages and working hours through the tripartite representatives’ meeting with labor-friendly politicians. The meeting will convene 4 ELC representatives (2 each from the ruling party and opposition party), representatives from the Ministry of Employment & Labor, labor representatives (from the FKTU and KCTU), and employer representatives (from the KEF and K-biz).
Labor strife over revision of the trade union act, the MOEL guidelines on ordinary wage, and government measures for normalization of the public sector is also planned. In particular, trade unions from 5 public energy companies (Korea Western Power Co., Ltd., Korea South-East Power Co., Ltd., Korea East-West Power Co., Ltd., Korea Southern Power Co., Ltd., and Korea Midland Power Co., Ltd.) seem to join the FKTU in response to the government’s push for public sector reform.
The FKTU has decided to demand a wage increase of 8.1% for regular workers and 17.8% for non-regular workers this year and the minimum wage in 2015 of $5.73 USD (₩6,139 KRW) per hour. However, this figure may change if the Minimum Wage Solidarity (along with the KCTU) decides to re-calculate the minimum wage for 2015.
Meanwhile, the KEF has recommended that companies increase their wages no more than 2.3%.
Summary of KEF ‘Wage Adjustment Recommendations 2014’
1. Companies are advised to increase wages no more than 2.3% this year (Companies whose wage increase is already higher than 2.3% due to ordinary wage expansion, retirement age extension and reduction of working hours, need to freeze their wages).
2. Wage composition should be decided in accordance with the Supreme Court’s ruling on Ordinary Wage.
3. Wage peak system should be introduced when a company decides to extend the retirement age to 60.
4. Current seniority-based wage system should be reformed to performance-based one.