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  • hangook77
  • Hero of Waygookistan

    • 1190

    • September 14, 2017, 09:10:12 am
    • Near Busan
Korea raises minimum wage 2.9% to 8,590 won for 2020
« on: July 12, 2019, 02:18:58 pm »
http://www.koreatimes.co.kr/www/biz/2019/07/367_272174.html?fbclid=IwAR3FNvVp1roZOB8QRitsHsKGgGUfNjaYd9Vvw2iK5DOChnJ6apxoM3JlXy4

**South Korea decided Friday to raise the minimum wage for next year by 2.9 percent, the slowest growth in a decade, as it took into account an economic slowdown and sluggish job growth.

The Minimum Wage Commission, involving labor and business representatives and experts, set the minimum wage at 8,590 won (US$7.32) per hour for next year, compared with 8,350 won for this year.

The growth rate sharply slowed from a 10.9 percent rise for 2019 and is the slowest gain since the minimum wage for 2010 rose 2.8 percent.

The minimum wage is the lowest possible hourly pay a local worker is lawfully entitled to receive.

A single-digit increase was widely anticipated as President Moon Jae-in has signaled at flexibility amid heightened economic uncertainty at home and abroad.

In his election pledges, Moon vowed to raise the minimum wage to 10,000 won by 2020.

For 2018, the hourly pay rose 16.4 percent on-year to 7,530 won per hour, the steepest rise in 17 years. The hourly pay rose by 29.1 percent in 2018 and 2019 since Moon took office in May 2017.

But the steep hikes have invited strong backlash from smaller firms and mom-and-pop stores over mounting labor costs.

The minimum wage hike is intended to increase income and consumption, and prop up the economic growth under Moon's signature income-driven growth policy.

But smaller firms and mom-and-pop stores responded to the steep hikes by dismissing part-time workers, thereby hampering job growth.

Park Joon-shik, head of the wage council, said the panel mainly took into account difficult economic conditions for the wage decision.

"The decision reflects the consensus for the need to flexibly respond to (the current economic) situation," Park told a press briefing in the administrative capital of Sejong.

"The Korean economy faces headwinds. In the process to pursue an economic and social goal that we are seeking to achieve, the current situation desperately needs an adjustment of pace or direction," he said.

The Friday decision is expected to invite strong protest from the labor sector, which has pressed for the need to keep Moon's election pledge.

"A minimum wage debacle has occurred," the Federation of Korean Trade Unions, a major umbrella labor group, said in a statement.

The group said Moon's pledge to build a society that cares about workers and to increase the minimum wage to 10,000 won has become a "hollow slogan."

"If things go this way, it will be difficult to keep the 10,000 won promise even during Moon's five-year term," it said.

The labor sector, which once vehemently supported the Moon government, has turned its back, claiming Moon is not keeping his labor-friendly election pledges. The wage decision may further strain the government's relationship with labor.

The labor and business sectors held tough wage negotiations this year as they so previously did.

Initially, the labor sector proposed 10,000 won for next year, which represents a 19.8 percent increase from this year's minimum wage.

But the business circle proposed a 4.2 percent cut to 8,000 won, inviting an angry reaction from the labor sector.

 It was the first time that the business circle demanded a cut in the minimum wage since 2009, when it proposed a 5.8 percent decrease to cope with the global financial crisis. (Yonhap)**


  • plan b
  • Super Waygook

    • 258

    • March 22, 2013, 11:53:06 am
    • Korea
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #1 on: July 12, 2019, 02:28:47 pm »
So many fast food places have purchased machines for customers to order their food from.
Even movie theatres now have self service kiosks for buying tickets and snacks.

At Lotte Mart, the staff goes all out to get every customer out by closing time. They probably don't get any extra time after closing, and want to finish everything by that time.

Businesses will continue to push back, and less people will be hired


  • hangook77
  • Hero of Waygookistan

    • 1190

    • September 14, 2017, 09:10:12 am
    • Near Busan
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #2 on: July 12, 2019, 02:33:32 pm »
So many fast food places have purchased machines for customers to order their food from.
Even movie theatres now have self service kiosks for buying tickets and snacks.

At Lotte Mart, the staff goes all out to get every customer out by closing time. They probably don't get any extra time after closing, and want to finish everything by that time.

Businesses will continue to push back, and less people will be hired

Yeah, I guess the original plan to push it to 10,000 won by 2020 spooked a lot of companies.  Lotte and E Mart should reopen back to midnight now though.  Screw them if they don't.  There's still Homeplus.  I guess on the bright side is that some of the inflation will be contained.  If a fulltime minimum monthly salary was near 1.75 million won, it would have been closer to 2 or 2.1 had the original hikes gone into being.  If a foreign English teacher were still starting at that, it would be rough.  ALso, as it is, a Korean public school teacher starts at 1.8 million a month.  SO, it is close to insulting for them, 


  • gogators!
  • The Legend

    • 3721

    • March 16, 2016, 04:35:48 pm
    • Seoul
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #3 on: July 12, 2019, 10:38:53 pm »
So many fast food places have purchased machines for customers to order their food from.
Even movie theatres now have self service kiosks for buying tickets and snacks.

At Lotte Mart, the staff goes all out to get every customer out by closing time. They probably don't get any extra time after closing, and want to finish everything by that time.

Businesses will continue to push back, and less people will be hired
I doubt there's a strong correlation between automation and the minimum wage. The machines make ordering easier and faster in many cases.

They are also an answer to a shrinking workforce.


  • thunderlips
  • Hero of Waygookistan

    • 1540

    • June 07, 2012, 10:01:55 am
    • South Korea
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #4 on: July 13, 2019, 08:21:00 am »
So many fast food places have purchased machines for customers to order their food from.
Even movie theatres now have self service kiosks for buying tickets and snacks.

At Lotte Mart, the staff goes all out to get every customer out by closing time. They probably don't get any extra time after closing, and want to finish everything by that time.

Businesses will continue to push back, and less people will be hired
I doubt there's a strong correlation between automation and the minimum wage. The machines make ordering easier and faster in many cases.

They are also an answer to a shrinking workforce.

There is absolutely a correlation between minimum wage and automation. https://www.google.co.kr/amp/s/www.forbes.com/sites/gregoryferenstein/2017/08/27/new-study-suggests-minimum-wage-leads-to-automation-of-low-skill-workers/amp/


  • gogators!
  • The Legend

    • 3721

    • March 16, 2016, 04:35:48 pm
    • Seoul
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #5 on: July 13, 2019, 10:15:44 pm »
So many fast food places have purchased machines for customers to order their food from.
Even movie theatres now have self service kiosks for buying tickets and snacks.

At Lotte Mart, the staff goes all out to get every customer out by closing time. They probably don't get any extra time after closing, and want to finish everything by that time.

Businesses will continue to push back, and less people will be hired
I doubt there's a strong correlation between automation and the minimum wage. The machines make ordering easier and faster in many cases.

They are also an answer to a shrinking workforce.

There is absolutely a correlation between minimum wage and automation. https://www.google.co.kr/amp/s/www.forbes.com/sites/gregoryferenstein/2017/08/27/new-study-suggests-minimum-wage-leads-to-automation-of-low-skill-workers/amp/
When did "suggests" and "seems" become absolutely?

And yet: "That might sound like terrible news for the nearly 5 million Americans who work in food and beverage serving industries, but some restaurants say that the automation of some tasks won’t come with job cuts, at least not immediately. McDonalds has said it doesn’t plan to reduce its workforce as it installs ordering kiosks. Panera Bread has said that at some locations where it has ordering kiosks, it has actually increased human hours to help the kitchen keep up with the higher number of orders that come in through the more efficient ordering system. Indeed, when technology automates some portion of a job, employment in that occupation often increases.

“We could never take out all the front-line employees” at Hardee’s and Carl’s Jr. restaurants, Puzder told the Washington Post. “You have to have people behind the counter because [customers] are used to that and people are more comfortable with it.”


  • L I
  • The Legend

    • 3393

    • October 03, 2011, 01:50:58 pm
    • Seoul
Re: Korea raises minimum wage 2.9% to 8,590 won for 2020
« Reply #6 on: July 14, 2019, 12:28:40 pm »
Quote
"South Korea's minimum hourly wage this year is 8,350 won, but the figure increases to 10,030 won when weekly holiday allowance is included

South Korea's minimum wage:
1988: 462.5
1989: 600
1990: 690
1991: 820
1992: 925
1993: 1,005
1994: 1,085
1995: 1,170
1996: 1,275
1997: 1,400
1998: 1,485
1999: 1,525
2000: 1,600
2001: 1,865
2002: 2,100
2003: 2,275
2004: 2,510
2005: 2,840
2006: 3,100
2007: 3,480
2008: 3,770
2009: 4,000
2010: 4,110
2011: 4,320
2012: 4,580
2013: 4,860
2014: 5,210
2015: 5,580
2016: 6,030
2017: 6,470
2018: 7,530
2019: 8,350

10,000 is coming soon?

Quote
"President Moon Jae-in promised to increase the minimum hourly wage to 10,000 won (US$8.59) by 2020 during his campaign in 2017."