An escalating nationwide strike by South Korean truckers is exacerbating disruptions to global supply chains, with the impact expanding from slowdowns and shutdowns at the country’s ports to shutdowns at auto plants.
The International Transport Workers’ Federation of Korea (ITF) said that since June 9, thousands of truck drivers have stopped working to protest against the cancellation of the minimum wage plan.
Tensions are rising, hitting ports hard as drivers try to block deliveries of the Asian country’s most critical exports, including semiconductor chip materials and products related to the petrochemical industry.
This is the first large-scale strike protest that South Korean President Yoon Seok-yue has faced since taking office. The Teamsters union opposes the government’s hasty repeal of basic wage guarantees for drivers at a time when energy prices are soaring.
According to data from South Korea’s Ministry of Land, Infrastructure, Transport and Tourism, about 37% of the country’s 22,000 truck drivers are currently on strike.
Strike upgrade! South Korean ports paralyzed and shut down
Drivers went on strike or went on strike at important terminals, causing cargo transportation to slow down or come to a complete standstill at Busan Port, Pyeongtaek Port and Uiwang Container Yard in Gyeonggi Province, severely impacting port transportation.
According to data from the South Korean Ministry of Transport on June 9, the daily container throughput of 12 ports across the country fell by 64% compared with the average level in May.
Busan Port, which is ranked the seventh largest port in the world and accounts for 80% of South Korea’s national container throughput, has a throughput of 13,035 containers, only 30% of the usual volume.
Ulsan Port, where Hyundai Motor is produced, has been paralyzed for four consecutive days; the throughput of Incheon Port has dropped to 20% of normal times; in addition, the delivery volume of Pohang and Daesan Port has been reduced to zero, and the transportation of steel and petrochemical products has also been affected. .
Negotiations have yet to reach an agreement
South Korea’s Ministry of Transportation said it had held a third round of negotiations for more than 10 hours on Saturday with leaders of the truck drivers’ union, urging drivers to return to work, but the two sides had still not reached an agreement.
According to the International Transport Workers’ Federation (ITF), 15,000 truck drivers from South Korea’s Cargo Truckers Solidarity (CTS) union held demonstrations at 16 locations across South Korea, with thousands of drivers taking part in the march.
About 100 unionized truck drivers gathered at the gate of a large Hyundai Motor plant in the southern city of Ulsan today to protest soaring fuel prices and demand a guaranteed minimum wage, union officials said. He said that hundreds more people are expected to join the protest on the 13th.
About 40 people were arrested during the strike, some of whom were later released. The strikes have been largely peaceful, although tensions have been tense in some places.
The union said there were more people on strike than officials said, and non-union truckers also chose not to work. The union did not specify the number of participants.
A union official said it was unclear whether negotiations would continue. The Department of Transportation said it would continue talks with the unions, but did not disclose details. A senior official from the union’s Busan region said union leaders from 16 regions across South Korea gathered on Sunday to discuss next steps.
Strike in South Korea further disrupts global supply chains
South Korea is a major supplier of semiconductors, smartphones, cars, batteries and electronics, and it is unclear how long the strike will last, but the protracted dispute will further disrupt a world already affected by the new crown epidemic and the Russia-Ukraine conflict. supply chain.
South Korea’s consumer inflation is currently at its highest level in 14 years, while slowdowns in chips, petrochemicals and automobiles further threaten South Korea’s exports and increase economic risks.
A total of 31 industry associations issued a joint statement on Sunday urging truck drivers to end the strike and return to work as industries such as cement, petrochemicals, steel, automobiles and IT components are experiencing supply chain bottlenecks.
Land and Resources Minister Won Hee-ryong said at a news conference on Thursday that steel and cement were likely to be the main victims of the strike. According to the Korea Cement Association, about 90% of cement has not been shipped out of factories, and the companies will delay deliveries until protesters leave the factory gates.
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