The main opposition party’s leader proposed Tuesday that the government and rival parties get together to discuss a minimum wage hike to boost the slumping economy.
The call by Moon Jae-in, chairman of the New Politics Alliance for Democracy, comes as the government has been encouraging companies to raise salaries for workers as part of efforts to tackle a protracted slump in consumption, a key downside risk for economic recovery.
The minimum wage for this year was set at 5,580 won ($4.98) per hour, a 7.1 percent rise from 2014.
“Rival parties and the government should put their heads together and discuss how fast the minimum wage should be raised,” Moon said during a meeting hosted by a party think tank.
He quoted Finance Minister Choi Kyung-hwan, who recently told a forum that domestic demand cannot rebound without an appropriate level of salary hikes.
“(Choi) acknowledged that the calls of myself and our party for income-driven growth and a minimum wage hike are justified, so there should be action, not just words,” Moon said.
The ruling Saenuri Party’s floor leader, Rep. Yoo Seong-min, dismissed Moon’s proposal, saying the government’s Minimum Wage Council is responsible for setting the rate.
“Labor, management and government are all represented there, so politicians can offer their opinions,” he told reporters after a party meeting. “It’s not something we should get together to decide, so I find the proposal rather odd.”
Some party officials called for caution in raising the minimum wage, citing concerns it could hurt small businesses and firms employing foreign workers, Kwon Eun-hee, a ruling party spokeswoman, told reporters after the meeting. (Yonhap)
