The Kyunghyang Shinmun reported on the 19th that an analysis of labor-cost statements for 11 Seoul-ordered sites worth 20 billion won or more, by the office of National Assembly member Yoon Jong-oh, found only 4 paying the city's 'fair wage' and none paying statutory weekly holiday pay. The Seoul city government disputed the facts.
According to the Kyunghyang Shinmun, the analysis was done by the office of Yoon Jong-oh of the Progressive Party, a member of the National Assembly's Land, Infrastructure and Transport Committee. It reviewed labor-cost statements for rebar and formwork workers that it obtained from Seoul, covering 11 sites ordered by the city worth 20 billion won or more. The office claims only 4 paid the fair wage under Seoul's standard and none paid statutory weekly holiday pay.
광고 문의 · 300×250Sections 1 to 4 of the Yeongdong-daero underground complex project were singled out as paying neither the fair wage nor weekly holiday pay. Seoul has long promoted a policy of guaranteeing construction workers fair pay on public projects. The newspaper said the data the city submitted differ from the actual labor-cost statements.
Seoul's explanation and the cited causes
Seoul told the lawmaker's office that most sites pay fair wages and holiday pay properly, saying it obtained standard labor contracts and written pledges to pay fair wages from main and subcontractors and posted notices on whistleblower rewards at some sites. The Kyunghyang Shinmun noted, however, that no follow-up on reports or real oversight took place.
The cause pointed to is the city's cost-estimation method. Winning-bid ratios and weekly holiday pay are said not to be properly reflected at the design stage, and amounts shrink at each subcontracting tier, making planned wages hard to pay. One builder reportedly said fair wages could not be paid because the bid ratio and rush-work periods were not considered in the design.
Audit exchange and proposals
The Korea Specialty Contractors News reported that Yoon raised the issue on the 19th at the committee's audit of Seoul. He argued for a model in which the ordering body manages labor costs directly so they are not cut by bid ratios down the chain, and for reforming cost estimation by setting wages aside from the principal first.
Mayor Oh Se-hoon replied that the point seemed appropriate and would be taken into account, but rebutted that not all 11 sites failed to pay holiday pay, saying most did apart from two sites including Yeongdong-daero. He also said he would work to ensure fair wages are fully reflected in construction costs. With the 4-versus-0 figures and Seoul's account in conflict, calls for independent verification of actual payments at each site may follow.
