Small-business representatives walk out of minimum wage talks over proposed increase above 2%

Lee Gi-jae and Geum Ji-seon, employer members representing small-business owners on the Minimum Wage Commission, speak to reporters after walking out of the 13th plenary session held Thursday at the Government Complex Sejong, saying they could not agree to a minimum wage increase of more than 2%. [Photo by Kim Yong-hun]

As deliberations over next year's minimum wage entered their final stretch, two employer members representing small-business owners walked out Thursday after public-interest members called for a ninth round of revised proposals. The mid-session walkout is highly unusual in the history of Minimum Wage Commission deliberations and has emerged as a new variable in the final-stage negotiations.

At the 13th plenary session of the Minimum Wage Commission held Thursday at the Government Complex Sejong, public-interest members asked both labor and management to submit their ninth revised proposals. Lee Gi-jae and Geum Ji-seon — the two employer members representing small-business owners — refused to participate in the submission process and left the meeting room.

Minimum Wage Commission Chairman Kwon Soon-won presides over the 13th plenary session held Thursday at the Government Complex Sejong. [Yonhap]

Speaking to reporters after the walkout, the two members said they believed an increase of 2 percent or more would be difficult to accept. "Submitting a ninth revised proposal would amount to agreeing to an increase above 2%, so we decided to leave the meeting room," they said.

In their eighth revised proposal, the management side offered an hourly wage of 10,520 won — a 1.9 percent increase over this year's minimum wage of 10,320 won ($7) per hour. Labor proposed 11,250 won, representing a 9.0 percent increase, narrowing the gap between the two sides to 730 won.

Lee and Geum appear to have concluded that submitting a ninth revised proposal as the public-interest members requested would likely push the management side's figure above a 2 percent increase, leaving them no choice but to refuse further participation.

Minimum wage deliberations proceed through a process in which labor and management each submit an initial proposal, then exchange successive revised proposals to narrow the gap. If no agreement is reached, public-interest members present a recommended range to guide further submissions. Should that also fail to produce a deal, the following year's minimum wage is decided by a vote.

While labor or management members have walked out in protest in the past, observers say it is highly unusual for employer members to refuse to submit additional revised proposals and exit mid-deliberation.

With two of the nine employer members — those representing small businesses — having left, Thursday's session continued with the remaining seven employer members representing the management position. Whether the public-interest members will present a recommended range or labor and management will continue negotiations on their own is seen as the key variable determining the final outcome.

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