Partial Resumption of Ready-Mix Concrete Deliveries in Seoul... Temporary Acceptance by Construction Companies

Ready-mix Concrete Industry "Irregular Transport Cost Increase Through Construction Companies, Not Negotiation Parties," Protest

A standing ready-mix concrete truck. [Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] While the ready-mix concrete industry is strongly opposing the refusal to transport within the four major gates and densely populated areas of Seoul by five metropolitan branches (Dongnambuk, Anyang, Bucheon, Goyang-Paju, Seongnam-Gwangju) of the Korean Federation of Trade Unions Ready-Mix Concrete Transport Labor Union, it has been reported that some construction companies are temporarily accepting transportation fee increases, leading to the resumption of deliveries at certain construction sites.

On the 18th, a construction industry official stated, "Because the delay penalties due to the suspension of sites within the four major gates of Seoul amount to at least several billion won daily, we have decided to accept the increase for now and proceed with further discussions."

The ready-mix concrete industry's opposition remains strong. A ready-mix concrete company official said, "Transport operators are demanding about 250,000 won for transportation fees when delivering within the four major gates and dense areas of Seoul," adding, "The price for one truckload of ready-mix concrete is about 490,000 won, so demanding more than half of that as transportation fees is unreasonable."

Due to unexpected additional collective actions by the transport union, some construction sites have found it difficult to pour cement, causing structural work to halt. Especially, construction companies with sites inside the four major gates of Seoul are urgently changing suppliers or paying premiums to barely secure ready-mix concrete supplies, but if the situation prolongs, damages are inevitable.

The ready-mix concrete industry is sighing amid overlapping adverse factors. The industry fears that if about 6,000 members of the ready-mix concrete transport union, which operates around 10,000 mixer trucks in the metropolitan area, refuse transportation, the damage to ready-mix concrete manufacturing plants will snowball.

The transport union has been refusing to transport ready-mix concrete to downtown areas such as the four major gates of Seoul since early this month. They claim this is due to the disappearance of the largest metropolitan ready-mix concrete production plant, Sampyo Seongsu Plant, the implementation of traffic restrictions by Seoul City, severe traffic congestion, reduced turnover, and increased fatigue among union members.

The ready-mix concrete transport union argues that they need to make 4 to 5 deliveries a day, but due to traffic congestion entering Seoul city, they can only manage 2 to 3 deliveries daily, which affects their livelihood. Since ready-mix concrete hardens if transportation time exceeds 90 minutes, about 60% of the demand for ready-mix concrete supplied to Seoul city sites has relied on the Sampyo Seongsu Plant located next to the Dongbu Expressway. However, with the demolition of the Seongsu Plant in August, only three ready-mix concrete production facilities remain in Seoul city.

The measure demanded by the ready-mix concrete transport union is ultimately an increase in transportation fees. In July, the Ready-Mix Concrete Transport Union and the Korea Ready-Mix Concrete Industry Association agreed to gradually raise the current metropolitan area ready-mix concrete transportation fee of 56,000 won per trip to 69,700 won by 2024.

A ready-mix concrete industry official said, "Since transport operators could not reach additional agreements with ready-mix concrete companies, they demanded additional transportation fees from construction companies, who are not negotiation parties, effectively increasing transportation fees irregularly," adding, "This additional transportation fee demand by transport operators targeting construction companies is a clear breach of contract and an act that breaks contracts made based on mutual trust and good faith."

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