Korean government orders cement truck drivers to return to work

Sourced from Bloomberg L.P.

During the Cabinet Meeting, President Yoon was quoted as saying: "I will firmly establish the rule of law between labor and management during my term [...] I will never compromise with illegality, and the responsibility for illegal activities will be held strictly until the end."

The union representing the truckers vowed to continue the strike action, and criticised the ruling for acting like 'martial law'. Talks between the two parties are expected to continue this week after they failed to reach an agreement on Monday.

Industries impacted

The strike has had a significant impact on a number of heavy industries, and has resulted in a virtual suspension in the manufacture of steel, cement, and petroleum goods. According to the Korean Transport Ministry: as of Monday, the number of containers moving in and out of South Korean ports was 67% below normal levels.

The order to return to work only applies to truckers in the cement industry so far, as it has been the sector hardest hit by the protest. Finance Minister Choo Kyung-ho reported that cement deliveries were down by more than 90%, resulting in delays at construction sites.

This is the second time in 2022 that truck drivers have staged a major walkout, with the union demanding that the government guarantee minimum freight rates to counteract rapidly rising fuel costs. A union statement argued that drivers felt compelled to drive for dangerous amounts of time in order to cover the cost of fuel.

Penalties

Truckers who violate the return to work order will face a fine equivalent to more than US$22 000, or even up to three years in prison. Commenting on the harsh penalties, Choo stated: “If we don’t respond sternly to illegal collective actions in accordance with the law and principles and neglect people’s livelihoods, logistics and industries, we won’t be able to recover from economic crisis and there will be no future for South Korea.”

Despite the harsh penalties, the union has already vowed to continue the strike and there are arguments to suggest that a harsh government response would actually be counterproductive. Michael Quinlan, emeritus professor at the University of New South Wales’ school of management and governance, was quoted by Bloomberg as saying: "Ordering the workers back to work won’t resolve the issue and will cause anger to fester unless the government offers something concrete in return."

This article was adapted from a piece by Bloomberg L.P., which can be found here.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/29112022/korean-government-orders-cement-truck-drivers-to-return-to-work/