South Korea transport ministry to meet with striking truckers union


A member of the Cargo Truckers Solidarity union stands next to a LPG lorry in Ulsan, South Korea. Truckers are calling on the government to make permanent a minimum-pay system known as the “Safe Freight Rate” and to expand benefits for truckers in other industries, including oil tankers.– Reuters

SEOUL: South Korea’s transport ministry plans to meet with the striking truckers union today for negotiations, a ministry official said on Saturday, with the impact of the strike expected to be more keenly felt through the country early next week.

Thousands of unionised truckers launched their second major strike in less than six months on Thursday, seeking better pay and working conditions.

The action is already disrupting supply chains across the world’s 10th largest economy.

It has affected automakers, cement and steel producers.

“We requested dialogue with the union and the truckers union replied that they would meet with us today at 2PM.

“The talk is not yet finalised, but we plan to meet with the union and talk,” the ministry official told Reuters.

“We are ready to talk about reasonable demands of the trucker union at any time and will make efforts to solve the issues,” the ministry said in a statement on Saturday.

It added that it expects to see the effects of the action across industries such as steel by early next week.

Damage is already visible at construction sites, while workers at Hyundai Motor’s Ulsan factory are delivering new cars by driving them directly to customers.

A union official confirmed today’s meeting, which would be the first official dialogue between the two sides.

The transport ministry said about 5,000 people took part in the strike on Saturday in 136 locations nationwide.

This was down from 9,600 on the first day of the strike.

Container traffic at ports dropped to 19% of normal levels as of 5PM on Saturday, the transport ministry said, down from 35% of normal levels in the morning.

The transport ministry expressed concerns about disruption in the supply of gasoline and kerosene if the strikes are prolonged, as about 80% of truckers carrying oil products for major refiners such as SK Innovation’s SK Energy and S-Oil Corp are members of the trucker union.

The cement industry estimated an output loss of about 37 billion won (US$27.7mil or RM124mil) as of Friday, said lobby group Korea Cement Association.

It added that the industry only managed to ship about 20,000 tonnes of cement on Friday, about 10% of usual daily shipments.

South Korean president Yoon Suk-yeol warned on Thursday that the government would consider various options.

These include issuing an order to break up the strike, calling it an illegal and unacceptable move to take the national supply chain “hostage” during an economic crisis.

According to South Korean law, during a serious disruption to transport the government may issue an order to force transport workers back to their jobs.

Failure to comply is punishable by up to three years in jail, or a fine of up to 30 million won (US$22,550 or RM100,799).

The Korea International Trade Association had received 53 reports of disrupted logistics from 31 companies since the strike began. — Reuters

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truckers , strike , supply chains , South Korea

   

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