Gov`t steering committee recommends wage freeze for public companies

SEOUL, Nov. 16 (Yonhap) -- A public sector steering committee on Monday
recommended a set of guidelines for a freeze on wages for all state-run companies
and organizations in 2010, the government said Monday.
The guidelines affect 97 state-run companies and quasi-governmental bodies, the
committee under the Ministry of Strategy and Finance said.
The committee also asked seven financial companies, including the Korea Deposit
Insurance Corp. and the Korea Exchange, to hold talks with union workers to cut
wages by more than 5 percent as they have been cited for high salaries in the
past.
"Freezing or cutting wages is in response to government-wide efforts to reduce
spending in the midst of sluggish economic growth," an official said after the
committee held a meeting.
He said the committee, in addition, called for belt-tightening on all unnecessary
expenditure in the new year.
Other measures recommended by the committee include the abolishment of free
tuition given to children of employees at public companies in favor of loans,
and adjustments on various welfare programs.
yonngong@yna.co.kr
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