President Yoon talks tough as trucker strike looms

Home > Business > Industry

President Yoon talks tough as trucker strike looms

Published: 22 Nov. 2022, 15:59

Members of the Cargo Truckers Solidarity speak during a press conference in a union building in Gangseo District, western Seoul on Nov. 14 [YONHAP]

President Yoon Suk-yeol ordered a “strong response” to any illegal activities during a truckers strike that could begin Thursday.

Cargo Truckers Solidarity, a union under the Korean Confederation of Trade Unions (KCTU), will demand permanent implementation of a freight charge system, according to the Ministry of Land, Infrastructure and Transport.

The union is set a vote on Thursday, and the government is urging truckers to reject the call for action.

In response, Yoon ordered ministries to “respond strictly to illegal acts in accordance with the law and principles,” according to deputy presidential spokesperson Lee Jae-myoung on Tuesday.

Under Korean law, strikes have to be led by a union, deal with labor issues, be authorized by vote and not involve violence.

In support of the truckers, the KCTU has called on all unions in the confederation to it strike from Wednesday. The actions will start with public transport unions under the KCTU on Wednesday. The Korea Railroad Corporation (Korail) Union will go on strike on Nov. 30.

The cargo union is going on strike again because the freight charge system that has been temporarily in place since 2020 for is about to end. The Cargo Truckers Solidarity will demand the permanent implementation of the system, according to the transport ministry.

Trucks are parked at Seobu Truck Terminal in Yangcheon District, western Seoul, on Tuesday. [NEWS1]

Under the system, minimum transport charges are guaranteed to cargo workers to prevent overwork and speeding. Fines are imposed on shippers that pay less than a certain minimum.

Extending the freight charge system to more types of cargo, including steel, automobiles, grain and parcels, will also be demanded. Only containers and cement are currently covered.

Earlier promises to make the arrangement permanent have been broken, the union claims.

The Ministry of Land, Infrastructure and Transport agreed in June to discuss making the system permanent, but the ministry has altered its position, the union says.

“The reason why our union stopped the general strike in June after eight days was because of the promise that the National Assembly would prioritize the revision of the freight charge system,” said a spokesperson for the Cargo Truckers Solidarity during a press conference held at a union building in Gangseo District, western Seoul on Nov. 14. “A bill has been proposed since then, but there has been no progress. With the system to expire on Dec. 31, we can no longer put off a general strike.”

The transport ministry is of the position that the union is making unreasonable demands. The agreement reached after the June strike was to discuss further implementation of the freight charge system, not making the system permanent, according to the ministry.

Expanding the use of the system is also being rejected by the government. Freight rates have risen by 10 to 20 percent due the application of the freight charge system, and if the range of items covered is expanded, small shippers will be hit hard and overall logistics costs may increase sharply, according to the ministry.

The cargo union is set on not backing down until a permanent freight charge system is guaranteed this time. Concerns are growing that the strike could last a long time.

Industries that suffered during the strike in June are getting nervous. The weak won, higher interest rates, high prices and weak economies globally are leading to concerns over logistics costs.

Steel, chemical, automobile and shipbuilding industries could have to shut down temporarily in the worst case scenario, since these industries need a supply of materials and parts in a timely manner. Cost of recovery after a shutdown would also be significant.

In addition to Yoon’s order for a “strong response,” the government urged the cargo union to call off the strike.

“We plan to actively work with the National Assembly to ensure that the extension of the freight charge system will proceed legislatively,” said Eo Myeong-so, vice minister for transport, on Tuesday. “The government will listen to reasonable opinions from the union, but will respond strictly to any illegal acts. We ask individual truck driver not to mobilize with the union and continue to work for their living.”

BY SOHN HAE-YONG, LIM JEONG-WON [lim.jeongwon@joongang.co.kr]