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Korean-American markets adopt a living wage

Korean markets, commonly known for the low wages paid their workers, are stepping up and offering salaries and more benefits to their employees. Some employees now receive wages higher than the federal minimum wage, and several stores have adopted a “living wage,” which guarantees a worker a realistic standard of living.

Last year, the Galleria Market Group was the first Korean market to sign on to the concept of a living wage. Now, other markets in the Los Angeles, California area and around the country are following suit. The Kajoo Market Group, another Korean market in the Los Angeles area, will enter discussions with its employees concerning the initiation of a living wage. It has agreed to the Los Angeles Korean Labor Counseling Center’s plans to implement a full-scale system of living wages. This development is startling in the world of Korean markets, and is seen as a new age for employee wages

“I believe the negotiations will be successful because the first system of living wages for Korean markets, started by the Galleria Group last June, is working out very well. The Kajoo Group has displayed a strong desire to move in the same direction, so the result of the negotiations will be positive,” said Young-joon Park, director of Los Angeles Korean Labor Counseling Center.

He added, “If the living wage system used by the Galleria Market Group is also implemented by the Kajoo Market Group, which is currently building another Market in Los Angeles, my guess is this will affect almost all of the other Korean markets, and will spread throughout the entire Korean market world.”

The Los Angeles Korean Labor Counseling Center has suggested a flexible introduction for the Kajoo Group’s living wage system – waiting until the completion of the group’s new Los Angeles shopping mall, beginning with employees in the Western Market area. Kajoo has accepted this plan, and intends to present it at negotiations next week.

The living wage is guarantees a certain standard of living for working families. It pays between two and four dollars above the currently adopted minimum wage.

In the case of the Galleria Market Group, the addition of between two to four dollars to the minimum wage will affect some 400 employees in four market centers, and bring the average employee’s base pay up to $11.50 per hour, a 50 cent increase over the standard living wage for the greater Los Angeles area, which is $11.

The Los Angeles Counseling Center has noted that in super-malls owned by groups such as Galleria or Kajoo, where space is rented out to smaller market groups that bring great businesses to the malls, the owners would receive up to 80 percent of their income in rental fees. This might lead such large market groups to take the initiative when instituting a system of living wages for their employees.

 

In News section of Edition 206: 9 February 2006

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