SEOUL (Reuters) -- South Korea’s transport ministry said on Monday the government is elevating the cargo transport warning concerning the truckers’ strike to the highest level of “serious”.
The second major strike in less than six months by thousands of unionized truckers for better pay and working conditions was criticized by South Korean President Yoon Suk-yeol as taking the nation’s logistics “hostage” in the face of an economic crisis.
The government on Monday planned to meet the country’s striking truckers’ union for talks for the first time since the nationwide walkout began five days ago, as supply chain glitches worsened and construction sites faced concrete shortages.
But a union statement on Sunday offered little prospect of a breakthrough in the dispute. “The transport ministry’s position is already set, and there is no room for negotiations, so this meeting is not a negotiation ... the content is a demand for an unconditional return to work,” the union said.
The strike organizer, the Cargo Truckers Solidarity Union (CTSU), has criticized the government for only being willing to expand the minimum-pay ‘Safe Freight Rate’ system for three more years, instead of making it permanent and expanding its application as the union demands.
According to South Korean law, during a serious disruption to transport the government may issue an order to force transport workers back to their jobs. Failure to comply is punishable by up to three years in jail, or a fine of up to 30 million won ($22,550).
Disruptions to industry from the strike come with the export-dependent economy, Asia’s fourth-largest, already facing lower-than-expected growth next year, with the central bank downgrading South Korea’s 2023 growth forecast to 1.7% from 2.1% previously.
Container traffic at ports dropped to 7.6% of normal levels as of 5 p.m. local time (0800 GMT) on Sunday, the transport ministry said, down from 17% of normal levels in the morning.
Major steel companies POSCO and Hyundai Steel saw shipments drop to 5% or less last week compared with usual levels, according to two industry sources, who spoke on condition of anonymity as they were not authorized to discuss the matter with media.
Gas stations may run out of gasoline and kerosene this week, especially in large cities. While stations secured inventory before the strike, about 80% of truckers for major refiners such as SK Innovation’s SK Energy and S-Oil Corp are striking union members.