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The Federation of Korean Trade Unions(the FKTU) decides to claim for 9.1% wage increase in 2012. - 19.4% wage increase for precarious workers and 5.558 KRW/per hour for the minimum wage - Considering

 

 

 

The Federation of Korean Trade Unions(the FKTU) decides to claim for 9.1% wage increase in 2012.

- 19.4% wage increase for precarious workers and 5.558 KRW/per hour for the minimum wage -

 

Considering `the living cost must be covered by a wage income` adjusted from 2012 standard cost of living announced by the FKTU as well as the expected inflation rate in 2012. the Central Executive Committee of the FKTU convened on 14th February finally came to decide the level of a wage increase in 2012.

 

If the standard cost of living for 4-person households in 2012 is adjusted to the average number of a salary and wage earners` household(3.34-person). total 4.484.872KRW(Korean Won) will be needed to cover the monthly living cost for a household. Then if it is reflected that 87.6% of the share of sing-income households to the total salary and wage earning as well as 3.3% of the expected inflation rate announced by the Bank of Korea. total 4.058.397KRW per month should necessarily be covered by wage income.

 

The average monthly wage(monthly wage + benefits monthly divided) of workers in 2011 was 2.812.057KRW. Hence in order to sufficiently satisfy the standard living const of 4.058.397KR. it is necessary to have 44.38% of wage raise.

 

However the very low level of actual wage has been taken into account so that a 9.1% wage increase(256.091KRW) with which 3.068.148KRW per month-76% of monthly standard living costs necessary to be paid only by salary and wage earning. is covered.

 

For precarious workers whose wage was only 48.6%(estimated 1.320.000KRW) of regular workers` found by the research on August 2011. the same increased amount. 256.091KRW per month equivalent to 19.4% wage increase was claimed for in order to reduce the pay gap between regular and non-regular workers.

 

Since 2005. the FKTU has claimed for the same amount of wage increase between regular and non-regular workers to reduce the existing pay inequity.

 

Also the FKTU has set a target to achieve the national minimum wage of 1.161.563KRW. 50% of the average wage(without benefits) of all workers. which will be set in June 2012 for year 2013. This amount is equivalent to 5.558KRW per hour(40 working hours per week).

 

CHEONG Moonju. the Executive Policy Director of the FKTU explained. ˝Workers have been far less paid than their productivity and also labour`s share of GDP keeps decreasing. which have resulted in much worse economic polarization and inequity in our society˝. he continued to say. ˝We need at least this wage increase in this year to compensate the decease of real wage due to continuous increase in public utility rates and persistently high inflation rate.˝

 

Then he pointed out the necessity of wage increase for the economic recovery by saying. ˝According to the recent research. GDP falls 0.33 percentage point as the wage income decreases by 1 percentage point. Therefore the sufficient wage increase for workers is essential to revitalize the economy˝

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