The Minimum Wage Improvement Research Group (Research Group) proposed to the Ministry of Employment and Labor a plan to reduce the committee size from the current 27 members to 15. This is in response to concerns that, compared to the overseas minimum wage committee comprising a minimum of 5 members, the domestic committee's size makes it difficult to reach agreements.
The Research Group also suggested a change in the composition of the Commissioners to a more expert-centered model and maintaining the current system.
The Ministry of Employment and Labor announced that the Research Group submitted a proposal containing these elements on the 15th.
The Research Group was established in November of last year to examine aspects that need improvement in the process of determining the minimum wage and to prepare alternatives. The minimum wage is decided within 90 days after the Minister requests a review from the Minimum Wage Commission, and the decision is made after going through procedures such as objections when submitted back to the Minister.
However, since the introduction of the minimum wage system in 1988, the legal review deadline has been met only 9 times. This is because the Minimum Wage Commission often continues deliberations past the deadline.
The Research Group noted, "Experts and stakeholders have criticized that the size of the domestic Minimum Wage Commission is too large, making it difficult to deliberate and decide on issues, and that it is virtually impossible to derive agreements through effective discussions and consultations." The size of the Minimum Wage Commission has been maintained since the related law was enacted in 1986.
In response, the Research Group proposed to adjust the size of the Minimum Wage Commission to 15 members, reducing the current total of 27, which includes 9 worker Commissioners, employer Commissioners, and public interest Commissioners each, by 12.
Compared to overseas, it is said that the domestic Minimum Wage Commission has a relatively large number of members. In major countries, France has a group of 5 experts discussing minimum wage-related issues. Britain has a total of 9 members, comprising 3 worker, employer, and independent Commissioners each, while Germany has 7 members. In Germany, among the 9 members, there are 3 each of worker and employer Commissioners and 3 public interest experts, but only the chairperson among the experts has voting rights. The other member does not have voting rights. Japan has a total of 18 members composed of 6 worker, employer, and public interest Commissioners each.
The Research Group also suggested two methods for composing the minimum wage committee members. One proposal is to have 15 members all comprised of experts, or to maintain the current structure while consisting of 5 workers, employers, and public interest Commissioners each.
If composed of experts, a pool of three times the number of Commissioners will be formed by those recommended by worker, employer, and public interest Commissioners. The final 15 will then be selected through labor-management negotiations. The Minimum Wage Commission so formed will deliberate on the minimum wage and make final decisions on related issues.
Instead, two specialized committees, 'Wage Level Expert Committee' and 'System Improvement Expert Committee,' will be established under the Minimum Wage Commission. By having labor and management representatives participate in these committees, it aims to ensure direct involvement from both sides. This approach will similarly apply to maintaining the current structure.
A representative from the Ministry of Employment and Labor stated, "Based on the Research Group's proposal and the results of past system improvement discussions, we will broadly gather opinions from labor, management, and other sectors," and added, "We will push for rational and widely accepted system improvements through sufficient social discussions."