First round of debate on 'company's solvency' in collecting the minimum wage.

By: queen [IP:]
Posted on: 2019-01-10 23:32:45
At a forum held on Thursday to gather opinions on the government's plan to revise the minimum wage system, there was a heated debate over the inclusion of "company's ability to pay" in the minimum wage decision standard. In addition, some pointed out that the government is concerned about Lee Won-hwa's plan and that it should be excluded sequentially from labor-management relations.

At a forum on the "Discussion on the Reform of the Minimum Wage Decision System" held at the Press Center in Jung-gu, Seoul, Kwon Soon-won, professor of Business Administration at Sookmyung Women's University, Park Gwi-cheon, professor of law at Ewha Womans University, Jeon Yoon-gu, a researcher at Kyunggi University, and Choi Tae-ho, director of the Labor and Labor Standards Department, attended the forum.

In particular, there was a controversy over the inclusion of corporate solvency in the draft bill on minimum wage.

In addition to the current cost of living for workers, similar workers' salaries, labor productivity and income distribution, the government's draft plan will also include new levels of employment, corporate solvency, and economic conditions including economic growth rates.

"Article 32 defines workers' rights and states that the nation should strive to increase employment and ensure proper wages," said Professor Jeon Yoon-koo of Kyunggi University.

"If that happens, businesses that do not consistently pay minimum wage must accept that they may not survive in the market," he said. "In that sense, it is desirable to reflect employment and economic effects on the decision criteria in terms of the purpose of the Minimum Wage Act or the provisions of Article 32 of the Constitution, but I wonder if it could be an independent indicator to consider a company's solvency among indicators related to the employment economic situation."

"Wouldn't the experts of the sector setting committee take into account that corporate solvency is an effective part of employment?" Professor Jeon said. "We will naturally consider the solvency of companies in the lower categories of employment level, but if we set it to an index equal to employment level, we need to reconsider it as a factor that will reduce the proper wage increase."

"There are many differences in the solvency of companies, and we wonder if we can put such abstract standards into the law," said Park Gwi-cheon, a professor at Ewha Womans University.

On the other hand, Roh Min-sun, a researcher at the Small and Medium Business Research Institute, said, "Although there are rumors that companies should be excluded from the decision criteria, it is important to set detailed standards for decision making, but it is not possible to decide on a single criterion based on the situation of Korean companies." The indicators of corporate solvency can have a very important symbolism.

"Article 123 of the Constitution states that the government should protect and nurture small and medium-sized enterprises," Roh said. "The reason why the government mentioned protection without mentioning only nurturing small and medium-sized companies can be weak."

"The minimum wage is a policy wage and a standard wage, but as the wage is determined by negotiation between labor and management, it is impossible to play a role as a policy wage or a standard wage that the law aims to determine," said Kwon Soon-won, a professor at Sookmyung Women's University. We hope to prepare a decision-making formula that comprehensively reflects the interests of wage earners and suppliers so that there will be no repetition of disputes in the decision-making process every year.

Some pointed out that the사설토토

plan to divide the Minimum Wage Committee into two pieces may serve as a double-edged prison for doing unnecessary work, which could lead to only two conflicts.

"The problem with Lee Won-hwa's plan is that it could be a rooftop house," Professor Jeon Yoon-koo said. "If the government's draft of the bill combines the two decision-making committees, which are recommended by the government by the labor, management and the government, with the two bills of the committee." "It would be better to avoid this method only."

Professor Park Gwi-cheon, on the other hand, said, "The dualization method can improve objectivity and professionalism."

"Although there are concerns that the group of experts may go through the conflict twice throughout the year, experts can discuss various criteria and empirical data," Park said. "I hope that if we present a certain number of sections and discuss them with a filtered plan, we will be able to see them objectively through the process of reviewing them twice."

Some argued that the committee should strengthen its role and strengthen its power.

"If the committee is established, it is necessary to induce the discussion to become more heated," said Roh Min-sun, a researcher at the institute. "For that, we hope to consider ways to ease the burden of the decision committee by allowing experts to seek a compromise, not by 50 percent."

Some pointed out that securing expertise of the section setting committee is the key.

"The key is to secure trust in the formation of committee members," Professor Jeon Yoon-koo said. "The most important thing is how to realize and implement the members' expertise, independence, and neutrality. "Independence comes from professionalism."

Concerns have been raised over the plan to include recommended public service committee members in order of labor and management.

"There are rumors that the proposed quota system can guarantee neutrality, but even if it is excluded, it will be supplemented by the participation of various other committee members, but there are concerns that those who study hard and express their opinions can be excluded if it is composed of 9 to 10 members," Professor Park Gwi-cheon said.

"The government has drafted the discussion as a starting point for the government to start discussions on the reorganization of the decision system," said Choi Tae-ho, director of the Labor Standards Policy Division at the Ministry of Employment and Labor.

"The draft proposal is not a definitive proposal, but a draft that can be supplemented through the process of collecting opinions," he said. "If experts, labor, and the public's opinions are gathered, they can be revised and supplemented based on the content."

"It is desirable to conclude the public discussion in January and prepare a revised government plan in early February to be legislated," Choi said. "If the schedule is delayed, it will be decided in the legislative process, but the final notification could be postponed until August 5."