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Trucker strike stresses S. Korea economy, threatens supply chains

by Agencies

Jun 14, 2022 - 11:08 am GMT+3
Members of the Cargo Truckers Solidarity stage a rally in Ulsan, South Korea, June 13, 2022. (AP Photo)
Members of the Cargo Truckers Solidarity stage a rally in Ulsan, South Korea, June 13, 2022. (AP Photo)
by Agencies Jun 14, 2022 11:08 am

South Korea’s prime minister warned Tuesday that the disruption of cargo transport could cause “irrecoverable” damage to the country’s economy, as a nationwide truckers' strike entered its eighth day.

About 6,840 truckers were rallying Monday at 14 sites across South Korea, continuing to trigger a delay in the shipment and delivery of key items like steel, cement, petrochemicals and tires, the Transport Ministry said in a statement.

The statement said some steel and cement-related factories halted their operations. It accused some striking truckers of obstructing cargo transports at some major southeastern ports.

During a Cabinet meeting, Prime Minister Han Duck-soo, South Korea's No. 2 official, said the “illicit activities” by the striking truckers will never receive public support, according to Cho Yong-man, the No. 2 vice culture minister who serves as a government spokesperson.

Cho cited Han as saying that the disruption of cargo transport could pose “a big irrecoverable blow” to South Korea’s economy, which already faces other difficulties.

The Ministry of Trade, Industry and Energy said in a statement Monday that the first six days of the strike caused an estimated 1.6 trillion won ($1.2 billion) in damages.

Truckers are on a strike, calling for an extension of temporary measures guaranteeing minimum wages amid soaring fuel prices. They met government officials several times but each meeting ended without any breakthrough.

In a statement Monday, the Cargo Truckers Solidarity said the Transport Ministry lacked the resolve and capacity to narrow differences over the truckers’ demand. The Transport Ministry said it’s seeking to continue talks to address the issue.

South Korean officials and experts say the strike’s damage has so far been limited to the country’s domestic industry, though a prolonged strike may undermine the global supply chains already hit by Russia’s assault on Ukraine and China’s COVID-19 restrictions.

It also represents the first major industrial action under newly elected President Yoon Suk-yeol, a pro-business conservative who previously vowed to deal "strictly" with labor disputes.

South Korea is the world's largest memory chip exporter and home to global chip powerhouse Samsung Electronics, as well as large car companies including Kia and Hyundai Motors.

"All we are asking for is to remove the uncertainty in our lives," Cho Jeong-jae, a member of the Cargo Truckers Solidarity Union, told Agence France-Presse (AFP) Tuesday.

The truckers say they are "desperate" due to sharp rises in fuel costs – with inflation in South Korea at its highest level in over a decade according to official data last month.

"When fuel prices drop, it's reflected very quickly by lowering freight fees," Cho said. "But that's not the case when fuel prices rise. Our livelihood is at stake."

Loud music blared out from a van parked near a port in Incheon on Tuesday, AFP reporters saw, as dozens of trucks lined up the road, flying flags hoisted on bamboo canes.

Similar protests were happening across the country – as of Monday, more than 7,000 people took part in the protests at 14 locations, according to the land ministry.

As of Monday, 23 members of the Cargo Truckers Solidarity Union had been arrested for committing "illegal activities" such as "interfering" with normal vehicle operation, according to the country's Transport Ministry.

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  • Last Update: Jun 14, 2022 2:00 pm
    KEYWORDS
    south korean economy strike labor rights truckers global supply chains
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