Minister of Labor Hong Shenhan: The minimum wage increase next year will be negotiated by the four parties of labor, management, politics and academia to reach an acceptable discount plan

Minister of Labor Hong Shenhan accepted an exclusive interview with the broadcast media today (photographed by reporter Li Lianghui)

[Reporter Li Jinghui/Reported from Taipei] The Ministry of Labor will hold a minimum wage review meeting tomorrow (24th) to discuss and confirm the amount of next year’s minimum wage. Minister of Labor Hong Shenhan accepted an exclusive interview with the broadcast media today. In response to the recent differences between labor and management on next year’s increase, he pointed out that the minimum wage The decision is not simply to calculate the price or bid, but to have representatives from labor, capital, government, and academia conduct rational debates based on data, try to find consensus, and reach a discount and amplitude adjustment figure and related supporting plans that "everyone is not satisfied with but acceptable". We are "confident" that a consensus will be reached tomorrow.

Minister of Labor Hong Shenhan attended the 8th APEC Human Resources Development Ministers' Meeting held in Nanjing, China on the 21st. He returned to Taiwan yesterday evening and accepted an exclusive interview with POP News Huang Weihan this morning. Regarding the minimum wage review meeting to be held tomorrow, major differences have arisen between management and labor regarding the expectations of next year's wage increase. Management believes that the wage increase next year should be considered in consideration of inflation and the operating pressure of traditional industries. "Within 3%" is more reasonable; the labor side quoted the latest data from the central bank's Board of Supervisors last week, believing that this year's economic growth rate has increased to 11.48%, and the annual CPI estimate has been revised upward to 2.03%. The employer group proposed that "not more than 3%" if the CPI is deducted, it would be like workers sharing less than 10% of the fruits of economic growth, which is "too insincere", and it is reasonable to call for an increase of 7.77%.

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The host Huang Weihan asked about the expectations of both labor and management, "add it up and divide it by two, which is 5%." He asked whether there is a version of the Ministry of Labor for the amplitude modulation? Hong Shenhan responded that the minimum wage review meeting will involve representatives from labor, capital, government, and academia to present data and conduct rational debates in an attempt to find consensus. The Ministry of Labor will not propose an official version at the beginning. Instead, it will first listen to the concerns and ideas of all parties and try to reach a discount plan that is "unsatisfactory to everyone but acceptable to everyone." The decision on the minimum wage is not simply a price calculation or arbitrary decision by the chairman.

Regarding the views of both employers and employees, Hong Shenhan analyzed that the minimum wage is the lowest threshold to ensure that workers can live a relatively dignified life. For grassroots workers with a monthly salary of 29,500 yuan, rising prices account for a very high proportion of their income burden, and their lives are under heavy pressure. Although employers agree to the increase, they believe that the overall GDP data is high, mainly driven by the technology industry and the financial industry. The profits of traditional industries and service industries have not increased significantly, and the prosperity of the technology industry cannot be used as the salary adjustment standard for all enterprises.

Although both labor and management have their own positions, Hong Shenhan believes that the annual growth rate of the Consumer Price Index (CPI) next year is expected to be above 2%. The impact of inflation will have a huge impact on low-wage workers. Both labor and management have reached a consensus on the direction of "increase". Based on the current minimum wage of 29,500 yuan per month and 196 yuan per hour, the minimum wage next year is confident of "smooth increase".

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