Striking truckers threatened, cajoled by government

Economy

Published: 24 Nov. 2022, 17:23 Updated: 24 Nov. 2022, 18:05

Striking truckers threatened, cajoled by government

Cargo trucks are parked at a container station in Euiwang, Gyeonggi on Thursday as truck drivers went on strike. [YONHAP]

Six percent of Korea's truckers went on strike Thursday, and the government delivered a stern warning to them, saying that any illegal activity will be met with a strong response.

“The government will take firm action against illegal activities by the unionized cargo truckers,” Prime Minister Han Duck-soo said Thursday.

Strikes are legal, but under Korean law, they have to be led by a union, deal with labor issues, be authorized by vote and not involve violence. Han specifically said that the striking truckers need to allow deliveries being made truckers not on strike.

This is second trucker strike since Yoon Suk-yeol became president. The first lasted for a week in June. Truck drivers have demanded that the government make the freight rate system permanent and expand the type trucking that qualifies for inclusion in the system.

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

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

The government estimated the economic damage caused by the week-long strike in June at 2 trillion won.

Truck drivers begin a nationwide strike at a port in Ulsan on Thursday.. [YONHAP]

The truck drivers are members of Cargo Truckers Solidarity, which is under the relatively militant Korean Confederation of Trade Unions (KCTU). A total of 25,000 are participating in the current strike.

Minister of Land, Infrastructure and Transport Won Hee-ryong stressed that no promises were made during the negotiations in June.

He said research is inconclusive on whether the freight rate system improves traffic safety.

“As such, by extending the system, we need to monitor whether the system improves safety for a longer period,” Won said.

The minister said the government has decided to go against extending the system to other cargo.

“The increased logistics costs will be transferred to the average consumers,” Won said.

The minister stressed that the income situation of other cargo truck drivers that the union is demanding to be included are better off than the container and cement truck drivers.

The "direction has to be decided through an in-depth and multi-angle discussion,” Won said.

“We are here to request the cooperation of the unionized truck drivers as well as the public,” Prime Minster Han said.

“Our economy is facing complex headwinds of global low growth, high inflation and high interest rates,” Han said. “This winter, there are concerns of a resurgence of Covid-19."

“Under such a serious situation, the union cargo drivers refusing to deliver will more than paralyze logistics and inflict damage on the national economy that can’t be turned around.”

The prime minster stressed the impact it would have on key national industries, including steel making and auto making, and how it would harm Korea's global credibility.

The prime minister also requested other not to join in.

He said the government will work on measures to minimize the impact of the strike, including speeding up the processing of cargo and arranging additional spaces for storing cargo. Military vehicles could be used for transportation.

To encourage non-union drivers to deliver cargo, the government plans to exempt them from highway tolls.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]