Negotiation with the Freight Truckers’ Union Unsuccessful: Countdown Begins for Government Order for the Commencement of Business Operations

Representatives of the Cargo Truckers Solidarity Headquarters, a member of the Korean Public Service and Transport Workers’ Union affiliated to the Korean Confederation of Trade Unions, announce their position after the first negotiations at the Ministry of Land, Infrastructure and Transport in Sejong-si on November 28. Yonhap News

The Cargo Truckers Solidarity of the Korean Public Service and Transport Workers’ Union, an affiliate of the Korean Confederation of Trade Unions, and the government managed to approach the table for talks five days after the strike began, but the two sides only reaffirmed their differences. The government and the union decided to continue the negotiation two days later, but an agreement seems unlikely. President Yoon Suk-yeol said he would personally preside over a cabinet meeting on November 29 and review an order for the commencement of business operations. The government insists on a hardline stance, and this is narrowing the space to resolve the labor problem through negotiations and dialogue.

The negotiation between the government and the Cargo Truckers Solidarity began at 2 p.m. November 28 and ended in slightly under two hours. The truckers’ union announced, “We said we would present a positive view on each of our demands to reach an agreement with the Ministry of Land, Infrastructure and Transport, but Second Vice Minister of Land, Infrastructure and Transport Eo Myeong-so only said, ‘There is no answer that the transport ministry can give.’” The transport ministry and the truckers’ union decided to continue the negotiation on November 30.

Minister of Land, Infrastructure and Transport Won Hee-ryong explains the negotiation status at the press room in the ministry’s Sejong office shortly after the negotiation with the Cargo Truckers Solidarity on November 28. Courtesy of the Ministry of Land, Infrastructure and Transport

Minister of Land, Infrastructure and Transport Won Hee-ryong held a press conference after the talks and said, “The Safe Trucking Freight Rates will not disappear after three years. We are only saying that we should see if it is valid after a proper agreement in the National Assembly.” He added, “We told them (Cargo Truckers Solidarity) to cooperate for the extension of the sunset policy before the end of the year and to immediately resume freight operations” Koo Heon-sang, who oversees logistics policies, also said, “The truckers’ union asked the government to postpone the order for the commencement of business operations, but since the decision is made by the government, we said we would deliver their request in the decision-making process.”

Labor criticized that the government only approached the talks on Monday to use it as an excuse to issue the order for the commencement of business operations. Since such an order is likely to lead to a legal battle over its validity, the government needed a formal act to make it look like that government did everything it could to resolve the problem through dialogue. The meeting on Monday was held after the transport ministry accepted a request for talks from the truckers’ union.

At 9 a.m. Monday, before the negotiation, the government raised the crisis alert in the field of land cargo shipment from the existing “alert” to “serious” and formed a Central Disaster and Safety Countermeasure Headquarters. Minister of the Interior and Safety Lee Sang-min, who also leads the Headquarters, said in a briefing, “If an extremely serious crisis is expected in our national economy due to the collective refusal to transport cargo, we will issue an order for the commencement of business operations and the police will establish a swift response system to protect normal transportation activities.” Minister Won also said, “I was informed that tomorrow (Nov. 29), the president would preside over a cabinet meeting and the order for the commencement of business operations would be on the agenda.” He also said, “The transport ministry will handle working-level tasks for implementation based on the premise that the order will be issued in tomorrow’s cabinet meeting.”

If the cabinet passes the order for the commencement of business operations, the transport ministry will launch a site inspection and deliver the written order to the cargo truckers personally or via mail or text message. The government plans to immediately punish truck drivers who do not resume business operations after receiving the written order. The order for the commencement of business operations is expected to be issued in fields where cargo shipment has been significantly disrupted, such as cement and remicon. The conflict between labor and the government is likely to escalate to extremes.

On Monday, day five of the general strike by the Cargo Truckers Solidarity, ripples from the strike spread to the entire industrial field, such as refined oil and steel, following disruptions in the cement and remicon industry. According to figures released by the transport ministry, as of 5 p.m. Monday, 7,080 members (32% of the total) of the Cargo Truckers Solidarity continued to refuse delivery (strike) in 186 locations in 18 regions. The container storage yard occupancy in twelve ports nationwide recorded 62.4%, which is the rate of a normal October (64.5%). Despite that shipping was partially resumed in the ports of Gwangyang, Pyeongtaek-Dangjin, and Ulsan, the freight transported has significantly reduced compared to ordinary times.

Shipping from POSCO and Hyundai Steel was also suspended for the fifth day and remicon casting has been suspended in 508 construction sites (56%), including the Dunchon Jugong reconstruction site, of the total 912 construction sites (20 construction companies) nationwide since November 25.