Truckers’ Strike
The South Korean Cargo Transport Workers’ Federation launched a general strike at the midnight of October 10 in opposition to the Ministry of Land, Infrastructure & Transport’s cargo transport industry reform plan announced in August this year. According to the plan, the South Korean government is to stop controlling the number of small cargo trucks for business use so that the shortage of vehicles in the parcel delivery service market can be dealt with. The federation is calling for the government to repeal the plan.
According to the government, the effect of the strike is likely to be limited in that only 3.2% of cargo trucks for business use, which total 437,501, are affiliated with the federation. However, the ratio is as high as 32.2% among 21,757 container trucks in operation and, as such, the strike is likely to have a significant effect on export and import logistics. The ratio may soar to 72% in some cases.
During the seven-day walkout by the federation in 2008, no less than 71.8% of the workers in the industry took part in it, resulting in a loss of approximately 8.14 trillion won. At present, the Port of Busan is filled with containers from Hanjin Shipping ships that have failed to reach their destinations for the receivership of the company and the port is likely to be paralyzed by the container truck drivers’ strike.
In the meantime, the strike by the Korean Railway Workers' Union that started on September 27 is showing signs of lasting. The two opposite sides in the strike have had several meetings but failed to reach an agreement so far. The cargo train operating ratio has declined by 40% or so on weekdays.
The government is going to respond to the strike by making use of alternative transport means, sending police officers, organizing an emergency committee in the ministry, etc. The Korea Railroad Corporation is planning to increase the number of container trains in operation by utilizing emergency personnel so that the container cargo transport volume can be increased to 87% of the normal level.