SEOUL (Reuters) – South Korean President Yoon Suk-yeol has warned the government could step in to end a nationwide truckers’ strike, describing it as an illegal and unacceptable move to hold the national supply chain “hostage” during an economic crisis.
Thousands of unionized truckers on Thursday launched their second major strike demanding better wages and working conditions in less than six months. The action is already disrupting supply chains in the world’s 10th largest economy, affecting automakers, the cement industry and steel producers.
Union officials said there was no negotiation or dialogue with the government. The country’s transport ministry said it requested a dialogue with the union on Thursday, but the parties have yet to agree on a date.
Union officials estimated that about 25,000 people joined the strike, out of a total of about 420,000 transport workers in South Korea. The Department of Transport said about 7,700 people are expected to strike at 164 locations across the country on Friday, up from 9,600 people on Thursday.
“The public will not tolerate holding the logistics system hostage in the face of a national crisis,” Yoon said in a Facebook message late Thursday, noting that exports are key to overcoming economic instability and financial market volatility.
“If the irresponsible denial of transport continues, the government will have no choice but to review a range of measures, including a back-to-work order.”
Under South Korean law, if there is a serious disruption in transportation, the government can issue an order to force transportation workers back to work. Failure to comply is punishable by up to three years in prison or a fine of up to 30 million won (US$22,550).
Should the government choose this option, it would be the first time in South Korean history that such an order has been issued. Transport Minister Won Hee-ryong told reporters Thursday that the ministry has already started preliminary work to issue the order.
The strike comes after South Korea’s exports fell the sharpest in 26 months in October as its trade deficit entered the seventh month, underscoring the slowdown in its export-led economy.
Amid the economic gloom, Yoon’s approval rating remained broadly unchanged at 30% for the fifth week, according to Gallup Korea on Friday, although his focus on economic issues was met with positive reception.