Seoul Bus Transport Association: 'Cannot Accept Union's 500 Billion Won Wage Hike Demand'

The Seoul Bus Transport Association has maintained its stance that it cannot accept the labor union's demands regarding wage increases and the criteria for calculating ordinary wages.

In a statement released today (the 10th), the Seoul Bus Transport Association, an organization representing city bus operators, stated, "In addition to a 1 trillion won lawsuit over ordinary wages, the union is demanding a wage hike worth around 500 billion won this year," adding, "A strike will only face severe criticism from citizens."

The Seoul City Bus Labor Union is urging management to set the standard hours for calculating ordinary wages at 176 hours and to raise hourly wages by 7.85%.

The fewer standard hours used to calculate how much of the monthly ordinary wage is considered per hour, the more wages must be paid, which is advantageous to the union.

The association has proposed 209 hours.

Regarding the standard hours for ordinary wage calculations, the association estimated that lawsuit claims filed between 2020 and 2025 amount to approximately 1.021 trillion won.

Furthermore, the association calculated that if the hourly wage is raised by 7.85% and the ordinary wage calculation standard hours are applied at 176 hours as demanded by the union, it would cost an additional 539.4 billion won every year.

The association explained, "If 176 hours are applied, it results in a 16.44% wage increase separate from the regular wage hike," and added, "Last year's annual salary for a driver in the 9th pay step was 68.7 million won. If both the 7.85% wage increase and the 16.44% increase from setting the standard at 176 hours are applied, the annual salary would rise by 16.39 million won, exceeding 85.09 million won."

In addition, the association emphasized that its proposal was by no means a wage freeze, noting, "We previously proposed a 10.32% wage increase to the union."

The association elaborated that during the 9th wage negotiations last month, it proposed a 10.32% wage increase by "reorganizing the wage system to set the number of standard hours for ordinary wage calculations to 209 hours, just like other metropolitan cities."

In particular, the association stressed that 209 hours is the standard specified in the "(Revised) Ordinary Wage Labor-Management Guidance Guidelines" drawn up by the Ministry of Employment and Labor on February 2 of last year following the Supreme Court's full bench ruling.

It also stated, "We proposed that if the court finalizes 176 hours, we will additionally pay the retroactive amount, but conversely, if the court rules for 230 hours, the union must also return and settle the overpaid amount."

Previously, in an appeal trial regarding a lawsuit filed by Dong-A Transport against management, the Supreme Court remanded the case to the Seoul High Court, reversing other parts of the lower court's ruling while upholding the part that recognized 176 hours per month as the standard hours.

Regarding this, the union claims that the ruling has already finalized the standard hours at 176 hours, while management counters that it is arguing in the remanded trial to change the standard hours to 209 or 230 hours, and that this portion of the ruling has not yet been finalized.

The association also emphasized on this day, "Busan, Daegu, Incheon, and Ulsan already reorganized their wage systems to 209 hours last year without separate wage hikes, agreeing to increases in the 10% range."

Regarding the union's strike scheduled for the 16th, the association said, "We will closely consult with the Seoul Metropolitan Government to arrange alternative transportation," and added, "We will do our utmost to ensure that city buses operate normally, at least on some routes and sections."

It also warned, "If the union interferes with the normal operations of drivers who do not participate in the strike, we will take prompt action with the police and the Seoul Metropolitan Government to ensure they face severe punishment."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.