The Seoul City government analyzed on the 19th that if it accepts all the demands of the city bus unions, which continue to engage in a legal strike following the breakdown of wage and collective bargaining negotiations this year, there would be a "25% wage increase effect." It is projected that the amount the city would have to bear would increase by an additional 280 billion won.
On the same day, the Seoul City government held a brief briefing at the city hall regarding the wage negotiations between the city bus unions and management and made this statement.
During the briefing, the Seoul City government refuted all five major claims made by the bus union representatives.
According to the Seoul City government, the bus unions are claiming that ▲ allowances must be recalculated and paid immediately according to the Supreme Court ruling ▲ the 20% wage increase is false ▲ the management has requested a wage cut ▲ there was no discussion of ordinary wages in the negotiation process ▲ negotiation on ordinary wages is a work to create favorable grounds for litigation.
First of all, the Seoul City government said regarding the claim that "allowances must be recalculated and paid according to the Supreme Court ruling" that "the Supreme Court's precedent on ordinary wages does not mean that it must immediately increase the wages of all workers."
Earlier, the Supreme Court en banc ruled on Dec. 19 of last year that "various allowances, such as regular bonuses tied to employment conditions or workdays, should be included in ordinary wages." It abolished the requirement of stability among the regularity, uniformity, and stability that had acted as criteria for determining ordinary wages.
Accordingly, the unions argue that the bonuses that have been paid regularly should be reflected in ordinary wages.
On the other hand, the Seoul City government explained that the Supreme Court ruling is significant in reestablishing the principles of ordinary wage calculation, which will be the standard in future labor-management disputes and litigation. Wages are not determined by law but are determined by negotiations between labor and management.
Meanwhile, the Seoul City government claimed that the Ministry of Employment and Labor's "labor-management guidelines" stipulate that "labor and management are encouraged to actively guide and support collective negotiations to reform into a future-oriented wage system" regarding the Supreme Court's ordinary wage ruling.
The Seoul City government also responded to the claim that "the union has never demanded a 20% wage increase" by stating, "Although it was not explicitly demanded, if ordinary wage reflection and wage increase proposals are accepted, wages will rise by about 25%."
According to the Seoul City government, the average monthly wage for bus drivers at level 4 last year was 5.13 million won. If ordinary wages are reflected, overtime and night work allowances will increase by 800,000 won (15.5%). The union is also demanding an 8.2% increase in the basic salary this year. Due to the structure of allowances linked to the basic salary increase, there would ultimately be about a 25% wage increase effect.
The Seoul City government stated, "If wages are increased as the union demands, labor costs alone are expected to be 1.818 trillion won."
Additionally, regarding the union's claim that "there is a demand for wage cuts," the Seoul City government stated, "We only proposed to discuss the wage increase rate after restructuring the wage system, which consists of a basic salary, bonuses, and allowances." Regarding the claim that "there was no discussion on ordinary wages during the negotiation process," it was stated, "In March, we conveyed our intent to restructure the wage system to the union, but afterwards, the union declared a suspension of negotiations during the negotiations that followed."
In response to the claim that it is a "work to create a favorable basis for litigation in some bus companies' ordinary wage lawsuits," the Seoul City government said, "The lawsuits currently in progress are historical ordinary wage issues, and those in progress now are future issues, so they are separate matters."