Debate Intensifies Over Minimum Wage for Contract-Based Workers: "Pilot Application for Certain Occupations vs. Not Legally Employees"

The 4th Plenary Meeting of the Minimum Wage Commission Held on June 9

As the expansion of minimum wage coverage for contract-based workers has rapidly emerged as a central issue at the Minimum Wage Commission, worker representatives have proposed that the minimum wage should first be applied to occupations where working hours can be measured, such as delivery riders. Employer representatives, however, argue that recognizing the employment status of these workers is beyond the commission’s authority, and that implementing such a system would threaten the survival of small neighborhood businesses, further intensifying the conflict.

On the 9th, Ryu Giseop, Secretary General of the Federation of Korean Trade Unions and a labor representative, spoke at the 4th plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong. Photo by Yonhap News

Worker Side: "Apply Minimum Wage First to Jobs Where Working Hours Can Be Measured"... Employer Side: "Beyond the Authority of the Minimum Wage Commission"

On the afternoon of June 9, the 4th plenary meeting of the Minimum Wage Commission was held at the Government Complex Sejong. Continuing from the previous meeting, the discussion again focused on expanding minimum wage coverage for contract-based workers. The Federation of Korean Trade Unions, representing workers, suggested applying the minimum wage first to contract-based workers whose working hours can be measured and for whom data has been accumulated. The Ministry of Employment and Labor had previously disclosed the results of a "Fact-Finding Study on the Application of Minimum Wage to Contract-Based Workers" only to the commission members. This report is also known to have recommended a pilot implementation limited to specific occupations among contract-based workers. Ryu Kisub, Secretary General of the Federation of Korean Trade Unions, argued, "The Ministry's fact-finding study, various statistics, international cases, and the special provisions in the Minimum Wage Act for contract and similar work forms all provide sufficient grounds for applying the minimum wage to contract-based workers."

Imi Seon, Vice Chairperson of the Korean Confederation of Trade Unions, demanded that the Ministry’s survey results be made public, stating, "It has not been impossible to separately apply the minimum wage to contract-based workers so far; rather, it has been neglected due to a lack of will from the government, the Ministry of Employment and Labor, and the Minimum Wage Commission."

Employer representatives strongly objected. As in previous arguments, they reiterated that recognizing the employment status of contract-based workers is beyond the commission’s authority. Ryu Kijeong, Executive Director of the Korea Employers Federation, countered, "The Minimum Wage Commission cannot make the final determination on whether workers in special employment types qualify as employees. Setting a minimum wage for those who have not been officially recognized as employees is neither within the commission’s authority nor its role."

Yang Okseok, Head of Human Resources Policy at the Korea Federation of SMEs, also argued that the discussion should remain within the scope and legal framework defined by the Minimum Wage Act, emphasizing that the debate over applying the minimum wage to contract-based workers falls outside the commission’s authority. He further questioned whether, if contract-based workers are recognized as employees, they would also be obliged to fulfill employee requirements such as a 40-hour workweek. Yang stated, "Regardless of their own wishes, they would have to accept a mandatory 40-hour workweek. It is questionable whether they could actually accept this."

On the 9th, at the 4th plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong, Ryu Kijeong, executive director of the Korea Employers Federation (KEF), a user committee member, spoke. Photo by Yonhap News Agency

Expanding Minimum Wage Coverage: Threat to Neighborhood Businesses’ Survival vs. Improvement in Delivery Service Quality and Safety

Employer representatives also claimed that expanding minimum wage coverage to contract-based workers would worsen the difficulties faced by neighborhood businesses, small enterprises, and micro-business owners. Ryu further stated, "Today, in front of the National Assembly, thousands of small business owners held a rally, leaving behind their livelihoods to demand the protection of their right to survive. Right now, these small business owners, who are also sole proprietors like contract-based workers and invest their own capital and time to create jobs, are facing much greater challenges. There is a need for policy consideration that takes this into account."

Worker representatives stressed that concerns about chaos in the labor market if the minimum wage is applied to these workers are exaggerated. Secretary General Ryu argued, "In other countries, when minimum wage and fair rates were guaranteed, workers’ skill levels improved and safety was enhanced. As a result, the quality of transportation and delivery services improved, and workers’ livelihoods and health were stabilized, creating a positive virtuous cycle." Vice Chairperson Im also pointed out, "Last year, one out of every five industrial accident fatalities involved special employment workers such as those in delivery services. If the Minimum Wage Act fails to protect these workers first, it will also be impossible to address the major social issue of reducing industrial accidents."

This content was produced with the assistance of AI translation services.