Steel and Petrochemical Transport Refusers to Receive 'Work Commencement Orders' Starting This Afternoon

Steel and Petrochemical Damage Exceeds 2.5 Trillion Won
Risk of Expanding Damage in Upstream and Downstream Industries

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The government has decided to issue additional work commencement orders targeting the steel and petrochemical sectors, which are deemed urgent for logistics normalization. With the Cargo Solidarity strike entering its 15th day and the expected damage in the steel and petrochemical sectors reaching trillions of won, the government appears to have proactively issued the work commencement orders before the industrial damage worsens. Additionally, as more cargo truck drivers returned to work following the work commencement order against those refusing cement transportation, and cement transport volumes began to normalize, the government judged that the work commencement orders are proving effective.

The Ministry of Land, Infrastructure and Transport announced on the 8th, after deliberation at an extraordinary Cabinet meeting, that it will issue work commencement orders under the "Cargo Truck Transportation Business Act" against those refusing transport in the steel and petrochemical sectors.

Article 14, Paragraph 1 of the Cargo Truck Transportation Business Act stipulates that if collective refusal to transport by transport operators or workers without justifiable reasons causes or is highly likely to cause a severe crisis to the national economy, a work commencement order may be issued.

This measure was taken just nine days after the work commencement order was issued against collective transport refusals in the cement sector on the 29th of last month. The government explained that this decision was made due to the enormous damage to industry and the economy caused by disruptions in cargo transport in the steel and petrochemical sectors, with the damage spreading to related industries.

Detailed monitoring of the damage to the steel and petrochemical industries caused by the Cargo Solidarity's collective transport refusal revealed that as of the 6th, steel shipments remained at about 48% of normal levels, resulting in shipment disruptions worth approximately 1.3154 trillion won. Some companies have already halted or reduced production lines, and if the situation continues, damage is expected to spread to related industries such as automobile and shipbuilding.

The petrochemical products sector is similarly affected. Petrochemical product shipments are at about 20% of normal levels, causing shipment disruptions worth approximately 1.2833 trillion won. The accumulated shipment disruptions are expected to soon lead to the shutdown of all production plants. This will inevitably cause a chain reaction of damage to related industries such as exports and automobiles. Restarting factories is expected to take at least 15 days, with estimated daily production losses of at least 123.8 billion won until operations resume.

The government has completed practical preparations for the swift issuance of work commencement orders and plans to deploy 86 joint investigation teams composed of the Ministry of Land, Infrastructure and Transport, local governments, and police to the field starting this afternoon to immediately carry out follow-up measures such as delivering the work commencement orders.

Transport companies and cargo truck drivers who receive the order must withdraw their collective transport refusal and return to transport duties by 24:00 the day after receiving the order.

If they fail to comply with the return obligation without justifiable reasons, administrative penalties such as suspension of operation or qualification, as well as criminal penalties including imprisonment of up to three years or fines up to 30 million won, will be imposed.

The government plans to strictly respond according to law and principles by swiftly enforcing the work commencement orders to minimize damage to the national economy, and by thoroughly investigating and prosecuting all involved in transport obstruction through threats or violence, as well as those who instigate or aid violations of the work commencement orders.

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