Commuter Chaos Averted but Strike Threat Remains... Union Braces for a Prolonged Standoff

The Seoul City Bus Labor Union, which had planned to launch a general strike, has decided to postpone the strike, but the underlying issues remain unresolved. The union and management have failed to reach any agreement on the key issues of the wage and collective bargaining agreement (wage negotiations), including whether to reflect regular bonuses in the ordinary wage and how to reform the wage system. There are also local workplaces that have gone on strike, raising the possibility of broader impacts.

According to the city bus labor and management on the 28th, the union declared the breakdown of negotiations at around 12:10 a.m. and announced a general strike, but decided to postpone the strike after about two hours. At a branch chiefs' meeting held at the union office, a vote was held on whether to proceed with the general strike. Out of 63 eligible voters, 49 voted in favor of postponing the strike. Only 11 voted in favor of the strike.

On the 28th, the Seoul City Bus Labor Union declared the breakdown of negotiations at around 12:10 a.m. and announced a general strike, but decided to postpone the strike after about two hours. As a result of the vote on whether to proceed with the general strike, 49 out of 63 members voted in favor of postponing the strike. The photo shows the area around a bus depot in Eunpyeong-gu, Seoul. Photo by Jo Yongjun

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The union's reversal was based on the judgment that the strike would not be effective. Even if a strike were to take place, the union believes that the stance of the Seoul Metropolitan Government and the employers?who insist that "no wage increase or collective agreement revision will be discussed unless the wage system is reformed"?would remain unchanged.

The union is also considering waiting for the outcome of the ongoing ordinary wage lawsuit. In 2015, workers at Dong-A Transportation in Seoul filed a lawsuit in response to the existing system, which lowers the base salary while matching the total wage with regular bonuses and various allowances. The union lost in the first trial, but the appeal is currently underway. Given the many variables in this situation, the union is also mindful of the possibility of losing public support.

The main issue is the ordinary wage. The union is demanding that regular bonuses be included in the ordinary wage and that wages be increased by up to 8.2%. The union argues that regular bonuses are considered ordinary wages according to the Labor Standards Act and a Supreme Court ruling, and that both the employers and the Seoul Metropolitan Government have already acknowledged this. On the other hand, the management claims that if regular bonuses are included in the ordinary wage and all of the union's demands for wage increases are accepted, the wage itself will increase, and therefore wage system reform is necessary to lower the level of ordinary wages. The Seoul Metropolitan Government, which operates a quasi-public system, also agrees on the need for wage system reform.

However, the union has emphasized that claims about the union demanding a wage increase of over 20% are not true. The union stated, "The Seoul Metropolitan Government and the employers are exaggerating and distorting the facts in their publicity, but we have never demanded a 23% wage increase," and added, "Even the 15% figure (which is the rate of increase according to the ordinary wage) is greatly inflated compared to the amount we are actually claiming in the lawsuit."

Going forward, the union plans to resume wage negotiations after the results of the ordinary wage lawsuit and the Ministry of Labor's official interpretation are available. Furthermore, considering that after the decision to postpone the strike, the union sent a message to its members stating that "once a new central government is formed and a new Minister of Labor is appointed, the payment of overdue wages recognized as regular bonuses being included in the ordinary wage will be secured quickly," a prolonged dispute is expected.

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Unlike in Seoul, local workplaces that began striking from the first bus of the day are also seen as a variable. If the Seoul workplace union decides to resume the strike, or if the damage to citizens caused by strikes in local areas influences the judgment of the Seoul Metropolitan Government or employers, the situation could change.

In Busan, city bus union members refused to operate city buses starting from the first bus at 4:20 a.m. on this day. As a result, more than 2,300 city buses stopped running across all 147 routes in Busan. In Changwon, Gyeongnam, where a quasi-public system is also in place, the city bus union stopped operating from the first bus at 5:00 a.m. Around 660 buses, accounting for 95% of all city buses in Changwon, did not operate. In Gwangju, the city bus union held a strike vote among its members starting on the 27th, with a turnout of 80% and an approval rate for the strike of 89%, resulting in the strike being approved.

The Seoul Metropolitan Government has stated that it will take measures to minimize inconvenience to citizens in preparation for any unexpected actions by the union. The management, represented by the Seoul City Bus Transportation Business Association, also stated, "The bus association plans to resume wage and collective bargaining negotiations with the union as soon as possible," and added, "In future negotiations with the union, the bus association will once again respectfully request the necessity of wage system reform."

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