The Korea Cargo Transport Workers Union went on a nationwide strike Monday, threatening to disrupt the nation’s export and import cargo transportation system.
According to reports, the strike disrupted operations at the ports in Busan and Ulsan on the southeastern coast and at the inland container depot in Yangsan, South Gyeongsang Province.
But disruptions were reportedly only minor at other ports and ICDs. The initial damage is limited because many of the union’s 4,000 members as well as most non-union members did not participate in the walkout.
Yet the strike could paralyze many ports and ICDs if it is prolonged and attracts the participation of non-union members. A 2008 strike by the union, which was widely supported by non-members, brought the Busan port to a halt, costing the nation $5.6 billion. Another strike in 2003 inflicted losses totaling $1.1 billion on the economy.
This year’s strike began with ominous signs. On the eve of the illegal action, a total of 27 cargo trucks and trailers were burned in Ulsan, Busan and other parts of the southeast.
According to the National Police Agency, all of the destroyed vehicles were owned by non-union members. This led the agency to suspect that some union members committed arson to intimidate non-members into joining the collective action.
This gives the impression that this year’s strike may not end swiftly. The strike plan, in fact, was announced in February. At the time, the union was frustrated by the slow pace of the government in following up on its 2008 promise to legislate minimum freight charges.
The domestic cargo transportation industry is characterized by a multiple-stage subcontract system involving cargo owners, large logistics corporations, smaller freight companies and truckers. In this structure, truckers are at the bottom of the chain, taking an unfairly small share of freight charges.
Hence, the union demanded that minimum rates for truckers be set based on delivery distance, fuel prices and transport costs. It further demanded that the proposed legislation on minimum rates set out punishments for cargo owners, logistics corporations and their subcontractors who fail to abide by their contracts with truckers.
But the government could not accommodate the union’s demand regarding punishment because doing so would amount to forcing specific freight rates on cargo owners and freight companies, a practice which runs counter to the principles of market economics.
Anyhow, the government needs to continue to talk with the union and resolve the dispute as early as possible. Otherwise, the strike could fuel more collective action. In fact, the Korean Construction Workers’ Union has already announced that it would start a general strike today.
The truckers’ union and the construction workers’ union both belong to the Korean Confederation of Trade Unions, the more militant of the nation’s two major umbrella groups. The KCTU itself is to stage a warning strike on Thursday and has scheduled a general strike in August. In July the KCTU’s most powerful member union, the Korean Metal Workers’ Union, plans to take industrial action.
The strike fever is exceptionally strong this year because of the presidential election in December. Labor groups may be tempted to resort to radical industrial action to deliver their messages to political parties. The latest examples include the one-day strike on June 20 by taxi drivers across the nation and the strike attempt by bus drivers in Seoul in May.
Therefore, the government needs to deal with illegal labor activities sternly to prevent them from taking a toll on the sluggish economy. We also urge labor activists to refrain from rocking the economy as the global economic conditions show no signs of improvement.
