Ruling party's 'performance bonus local currency payment' bill proposed... Labor groups 'violates wage payment principle' demand withdrawal

A legislative proposal by South Korea's Democratic Party to permit companies to issue a portion of performance bonuses and severance pay in local currency has ignited strong opposition from labor unions. The bill, introduced by Democratic Party lawmaker Park Min-kyu, would allow employers to pay wages in forms other than cash, specifically mentioning local gift certificates, provided they obtain prior agreement with employees through their contracts.

Labor organizations, including the Korean Confederation of Trade Unions (KCTU), have vehemently criticized the bill. They argue that it undermines the fundamental principle of wage payment in currency and could lead to a reduction in real wages for workers. The KCTU has issued a statement demanding the immediate withdrawal of the proposed legislation.

Further complicating the situation, the opposition People Power Party has also voiced concerns, suggesting the bill could infringe upon workers' property rights. While proponents of the bill cite potential benefits such as promoting local consumption and preventing overseas remittances from impacting regional economies, critics argue these potential gains do not outweigh the risks to workers' rights and the established norms of wage disbursement.

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The bill undermines the principle of wage payment in currency and erodes real wages, so it must be withdrawn.