"Subcontract Payment Increase"... Over 30 Nationwide Structural Construction Sites Halted

Sharp Rise in Raw Material Prices
Partial Strikes at Some Reinforced Concrete Sites

[Asia Economy Reporter Moon Chaeseok] Reinforced concrete subcontractors halted structural work at more than 30 construction sites nationwide on the 2nd, demanding an increase in construction payments for just one day. Since most of the primary contractors responded that they would engage in negotiations, no further strikes will be held.

According to the Reinforced Concrete Association and the Korea Specialty Contractors Association, about 30 reinforced concrete companies nationwide stopped structural work for one day. The association had previously sent an official letter last month to the top 100 construction companies based on construction capability evaluations, stating that if the contract unit price for reinforced concrete was not raised due to the sharp rise in construction material and labor costs, collective action would be taken. The letter included a warning that if construction companies did not submit a compensation guarantee form for loss reimbursement by the 1st of this month, a "shutdown" (work stoppage) would be considered.

As a result, except for sites where construction companies expressed willingness to negotiate the unit price on the previous day and the day itself, work was temporarily halted at more than 30 other sites. The halted sites were reported to include 15 locations in the Seoul metropolitan area (Seoul, Gyeonggi, Incheon) and 17 in other provinces.

In the letter sent last month, the association requested a 20% increase in subcontract payments, considering the rise in material costs such as hardware, lumber, plywood, labor costs, and indirect costs and labor cost increases due to delays and stoppages in supplied materials like ready-mixed concrete and rebar from primary contractors. An association official stated, "Although the exact price increase has not been finalized, many construction companies have expressed understanding of the specialty contractors' position and willingness to negotiate unit prices. The work stoppage was limited to one day on the 2nd, and no additional strikes will be held."

Accordingly, structural work is expected to proceed smoothly at most sites from the 3rd onward. However, depending on the results of negotiations with the primary contractors, the possibility of additional strikes cannot be ruled out. A representative from the Specialty Contractors Association said, "It is fortunate that the work stoppage did not spread or prolong and was resolved for now. We hope that large construction companies recognize the difficulties specialty contractors face due to recent raw material price increases."

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