Cargo Solidarity Union Signals Second Indefinite Strike Within the Year... Cement and Remicon Industries 'On Edge'

Cargo Solidarity Union Announces Second Indefinite Strike... Demands Abolition of Safety Freight Fare Sunset System
"About Half of 22,000 Union Members Participating... Internally Encouraging Situation"
Cement Industry Hit Hard... Daily Sales Loss Estimated at 11 Billion KRW

Cargo Solidarity Seoul-Gyeonggi Regional Headquarters General Strike Departure Ceremony
(Uiwang=Yonhap News) Photo by Hong Gi-won = On the morning of the 25th, union members shout slogans at the Cargo Solidarity Seoul-Gyeonggi Regional Headquarters general strike departure ceremony held near the Inland Container Depot (ICD) in Uiwang-si, Gyeonggi-do.
Cargo Solidarity launched a three-day general strike from the 25th to the 27th, demanding the abolition of the sunset clause on safe freight rates. 2021.11.25
xanadu@yna.co.kr
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[Asia Economy Reporter Lee Junhyung] The Cargo Solidarity Headquarters of the Korean Confederation of Trade Unions (KCTU) Public Transport Workers' Union, which has been on a collective transportation strike for three days, has hinted at a second indefinite general strike within this year. The Cargo Solidarity stated that if their six major demands, including the abolition of the sunset clause on the safe freight rate system, are not accepted, they may launch a second round of struggle by the end of this year. The cement industry, hit hard by the Cargo Solidarity’s general strike, is joined by the ready-mixed concrete (Remicon) industry in deepening concerns.

The Cargo Solidarity announced on the 27th, “If our demands are not accepted and negotiations do not proceed properly, we will have no choice but to resume the general strike,” adding, “The duration of the second general strike could be indefinite.” The Cargo Solidarity began the general strike on the 25th, lasting three days. Their demands include six main points: ▲abolition of the sunset clause on the safe freight rate system ▲expansion of the safe freight rate system to all vehicle types and cargo items ▲freight rate increases ▲full application of industrial accident insurance ▲abolition of the consignment system ▲securing basic labor rights. A Cargo Solidarity official said, “Given the accumulated dissatisfaction among union members, entering a general strike after a long time is internally encouraging,” and “More than half of the approximately 22,000 union members are participating in the strike.”

The core issue is the sunset clause on the safe freight rate system. The safe freight rate is a rate determined annually by the Ministry of Land, Infrastructure and Transport’s Cargo Truck Safe Freight Rate Committee, which consists of transport operators, cargo owners, and cargo truck drivers. Known as the ‘minimum wage system for cargo,’ cargo owners who pay rates below the safe freight rate are fined 5 million KRW per case. This system has been implemented with a three-year sunset clause since last year and is set to be abolished by the end of next year. The Cargo Solidarity demands the abolition of the sunset clause and the expansion of the safe freight rate system, which currently applies only to container and cement industries, to other sectors.

A vehicle belonging to the Cargo Solidarity blocking the main gate of a cement factory located in Danyang, Chungbuk. [Photo by Korea Cement Association]

The cement industry has been directly hit by this general strike. Cargo trucks affiliated with the Cargo Solidarity have stopped transporting cement and have even blocked vehicle access to some factories using their trucks. As a result, cement shipments have been halted not only at production sites such as the Donghae and Okgae plants in Gangwon Province but also at distribution bases in the metropolitan areas including Paldang, Susaek, and Incheon. A representative from the Korea Cement Association explained, “Since large-scale construction sites are concentrated in the metropolitan area, damage is inevitable,” adding, “If the strike prolongs, confusion at construction sites due to supply disruptions will also occur.”

The scale of the damage is considerable. According to the Korea Cement Association, the daily average sales loss in the cement industry due to the Cargo Solidarity strike is about 11 billion KRW. Considering the general strike has been ongoing for three days, the total damage amounts to approximately 33 billion KRW. Due to the strike, the daily average cement shipment has decreased to 40,000 to 50,000 tons. During peak season, domestic cement demand averages about 200,000 tons per day.

The Remicon industry is also closely monitoring the situation. If the supply of cement, a raw material for Remicon, is disrupted, production and delivery will inevitably be affected. So far, the Remicon industry has reportedly not suffered significant damage, thanks to prior adjustments of construction sites and delivery schedules in preparation for the announced general strike. However, there are concerns that if the Cargo Solidarity launches an indefinite general strike at the end of this year, logistics disruptions could worsen uncontrollably. An industry insider said, “Each Remicon company has secured cement stock, so the three-day strike did not have a major impact,” but added, “However, with burdens already increased due to issues like the urea solution crisis, an indefinite general strike could lead the situation to deteriorate further.”

This content was produced with the assistance of AI translation services.