Strikes in South Korea continue
2022.11.27 23:36
Strikes in South Korea continue
Budrigannews.com – As supply chain issues worsen and building site concrete shortages worsen, the government of South Korea will meet with a striking truckers’ union on Monday for the first talks of a nationwide walkout that will last five days.
The government raised its warning of cargo transport disruption to the highest level, estimating daily losses of approximately 300 billion won (224 million dollars) due to a shortage of cement and gas for gas stations.
Despite the fact that thousands of truck drivers are calling for better pay and working conditions, the union saw little chance of a breakthrough in the second major strike in less than six months.
The union stated in a Sunday statement that “the content is a demand for an unconditional return to work” and that “the transport ministry’s position is already set, and there is no room for negotiations.”
The strike is interfering with industrial activity at a time when the central bank has reduced its 2023 forecast from 2.1% to 1.7%, indicating that Asia’s fourth-largest economy, which is reliant on exports, will experience lower-than-expected growth next year.
According to the presidential office, President Yoon Suk-yeol Yoon stated on Monday that “we need to establish a rule of law between management and labor.”
According to his office, Yoon will hold a cabinet meeting on Tuesday to consider a “workforce order” for truckers to return to their jobs. Yoon has criticized the strike as “hostaging” the nation’s logistics in the face of an economic crisis.
When there is a significant disruption to transportation, the law allows the government to issue such an order. Failure to comply can result in up to three years in prison or a fine of up to 30 million won ($22,550).
The Cargo Truckers Solidarity Union (CTSU), the strike organizer, has criticized the government for refusing to meet union demands to make a minimum-wage system permanent and expand its scope after three years.
The transport ministry reported that container traffic at ports had decreased to 21% of normal levels by 10 a.m. (0100 GMT) on Monday, compared to 49% on Friday.
POSCO, a member of the steel industry (NYSE:)The transport ministry reported that shipments for Hyundai Steel decreased by more than half on Sunday to 22,000 tonnes, down from the usual average of 46,000 tonnes.
Despite supplies secured prior to the strike, some gas stations, particularly those in large cities, may run out of gasoline and kerosene as early as this week.
This is due to the fact that approximately 70% to 80% of truck drivers for major refiners, including SK Innovation’s SK Energy and S-Oil Corp, are union members who are on strike.
According to the Yonhap news agency, 259 out of 459 building sites have stopped working with ready-mix concrete since last week. The transport ministry said that most sites were expected to run out by Tuesday.
The Korea Cement Association stated that shipments had decreased to 9% of their usual levels and that the cement industry had an estimated cumulative output loss of approximately 46.4 billion won ($35 million) by Saturday.
The lobby group stated in a statement that “non-union bulk cement truck owners, who are implicitly sympathetic to, or in fear of, the cargo union’s illegal activities, are giving up cement transport.”
