The Federation of Korean Trade Unions(FKTU) decided the wage demand rate of 7.6% for this year on the basis of the monthly aggregate wage amount which is equivalent to 257,860 won(US$227). FKTU also announced a separate wage increase rate of 17.1% for the contingent workers.
The demand rates were endorsed by the FKTU central executive committee held on February 15. The monthly aggregate wage is calculated including the monthly fixed wage and the average monthly amount of allowances and bonuses paid during the year.
The wage demand rate is calculated by reflecting the standard living cost and the projected consumer price index(CPI) rate. Last month, FKTU has unveiled the standard living costs of 4,452,672 won(US$3,922) for a three-member household and 5,099,186(US$4,491) for a four-member household respectively.
FKTU used an average urban household size of 3.23 family members based on the official figure released by the Statistics Korea and the CPI increase rate of 1.8% projected by the Bank of Korea for this year.
The monthly standard living cost for a 3.23-member household reaches 4,131,459 won(US$3,632), but the monthly average wage last year was 3,377,824 won(US$2,969). Having considered the formidable gap between the standard living cost and actual wage in reality, FKTU adjusted the basis for the wage demand, lowering the target to 88% of the standard living cost which is 3,635,684 won(US$3,196). The gap between the adjusted target wage and the monthly average wage last year is 257.860 won(US$227).
For the contingent workers, FKTU said that it will demand the same amount of 257,860 won(US$227). According to the FKTU, the monthly average wage for the contingent workers is 1.51 million won(US$1,327), only 49.2 % of the regular worker's wage. 17.1% wage hike for the contingent workers can improve the wage gap between the regular and contingent workers to 53.3%.
reported by Bae Hye-jeong
translated by Kim Sung-jin