Supreme Court ruling, meaning and change of “age-based wage peak system null and void”

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Let's find out more about this with reporter Han Sang-woo, who is covering the labor sector at the Ministry of Economy.

[Reporter Han Sang-woo: If you look at the statistics, more than half of companies with 300 or more employees, or 52%, have a wage peak system.

As the law to increase the retirement age to 60 was introduced six years ago, the number of companies that introduced the wage peak system increased significantly, and the number has continued to increase since then.]

[Reporter Han Sang-woo: Yes, that's right.

It is not.

To summarize today's (26th) judgment very simply, it can be seen that only the company cannot have a good wage peak system.

It is okay to increase the retirement age, which was short, or reduce work a little when you reach a certain age, or introduce a wage peak system in this way. , this is against the law and should not be done.

So, when I checked with the Ministry of Employment and Labor today, it was predicted that there would be no major changes or confusion in the market because there are not many companies like the ruling today.]

[Reporter Han Sang-woo: Yes.

Both the Confederation of Trade Unions (KCTU) and the Korea Federation of Trade Unions (KFTU) are taking a very hard line.

It is about 30 minutes after the verdict was issued today, to the extent of issuing a statement.

Although the wage peak system basically increases the retirement age, it is a wage cut system, so if the cost is reduced like this, new employees must be hired, but there are many companies that do not.

That is why they are claiming that the wage peak system should be abolished.

And actually, unions of large corporations such as Hyundai Motor Company and Samsung Electronics are already demanding the abolition of the wage peak system in this year's wage negotiations.

It is highly likely that they will use this judgment as leverage in future negotiations to take a tough stance.]

[Reporter Han Sang-woo: Yes, companies are obviously taking a negative stance.

Six years ago, when the retirement age was increased to 60, the labor and management agreed to introduce a wage peak system. Now that the retirement age of 60 is settled, let's change the wage peak system, let's get rid of it. that is.

Therefore, the positions of the two sides are significantly different and confusion is growing, so it seems necessary for the government to come up with new guidelines.]

▶ The Supreme Court ruling, meaning and change of “the age-based wage peak system is null and void”

▶ Similar lawsuits, between labor and management Renegotiations likely