Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

Minimum Wage Fixing Convention, 1970 (No. 131) - Republic of Korea (Ratification: 2001)

The Committee notes the comments of the International Confederation of Free Trade Unions (ICFTU) dated 6 September 2005 alleging formal and material breaches of the minimum wage legislation by the Government.

According to the ICFTU, the minimum wage rates announced on 8 July 2005 to be applicable as from September 2005 were adopted at the Minimum Wage Council’s meeting of 29 June 2005 despite the absence of all nine worker members. The ICFTU indicates that the workers’ representatives left the meeting because of heavy police presence monitoring the council’s discussions and creating a threatening environment totally inappropriate for tripartite consultations. The decision taken with only the presence of seven government representatives and nine employer members was thus in contravention of quorum rules and, more concretely, section 17(4) of the Minimum Wage Act which requires the presence of at least one-third of the workers’ and employers’ members, respectively for a valid decision, unless these members fail to attend without justifiable reasons even after having been given two or more summon notices. Moreover, the ICFTU considers the minimum wage-fixing decision to be objectionable because it was based solely on economic parameters with no consideration for social conditions, such as the negative repercussions of the adoption of the 40-hour workweek on the livelihoods of minimum wage earners.

In its reply, dated 24 May 2006, the Government explains that the worker members of the Minimum Wage Council walked out after a vote had been called, thus voluntarily giving up their right to vote, and therefore the decision was valid and lawful in accordance with the administrative practices set out in the Minimum Wage Act and followed by the Minimum Wage Council. It also indicates that police forces were present outside the meeting room, simply on standby, as some members of the Korean Confederation of Trade Unions (KCTU) had illegally occupied the meeting room the previous day and caused the suspension of the council’s meeting. As regards the criteria taken into consideration for the periodical adjustment of minimum wage rates, the Government specifies that the wage of workers remunerated at the minimum wage rate will not be reduced even if the weekly working hours are shortened from 44 to 40 hours because their wage level will be maintained under the revised Minimum Wage Act of May 2005. The Government adds that the minimum wage applies to all workers, whether regular or non-regular (including part-time workers), in enterprises with one or more workers, and also that various allowances such as the overtime work allowance are not included in the minimum wage.

The Committee recalls that direct, genuine and effective consultations with the social partners on an equal footing constitute the very essence of the Convention. The Committee also recalls that the ILO Committee on Freedom of Association has emphasized on numerous occasions the importance it attaches to the obligation to negotiate in good faith for the maintenance of the harmonious development of labour relations. The Committee therefore expresses the hope that the Government will make every effort to restore a non-conflictual climate within the Minimum Wage Council based on trust, full respect for social dialogue and strict application of standing rules and procedures. It also expects the social partners to exercise their rights and pursue their legitimate objectives within institutional limits in the interest of best serving those most in need of minimum wage protection.

The Committee is raising other points in a request addressed directly to the Government.