Starting Tomorrow, 'Ready-Mix Concrete Transport Refusal' in the Seoul Metropolitan Area... Ready-Mix Concrete Plants to Halt Operations

Remicon trucks halted during the recent Cargo Solidarity transportation refusal incident. [Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] The Ready-Mix Concrete Transport Labor Union (Transport Union) has decided to begin a transport refusal starting from the 1st, forcing ready-mix concrete factories in the Seoul metropolitan area to halt operations.

On the afternoon of the 30th, negotiations between the Transport Union and representatives of 14 ready-mix concrete companies in the metropolitan area broke down, leading the Transport Union to announce that they will proceed with the planned rally on the same day.

The Transport Union demanded a 27% increase in transport fees (from 56,000 won to 71,000 won), holiday bonuses, time-off allowances, performance bonuses, and the provision of urea solution. In response, the ready-mix concrete industry proposed a final transport fee increase of around 9% (an average of 5,000 won across 14 metropolitan regions) and stated that the other four additional demands could not be accepted.

Kim Hee-gwi, Secretary General of the Transport Union, said, "Since negotiations have broken down, we will proceed with the Gwanghwamun rally scheduled for tomorrow," adding, "As union members refuse to operate and attend the rally, the transport refusal has effectively begun. Negotiations will continue, but the transport refusal will persist until our demands are met."

A representative from the Korea Ready-Mix Concrete Industry Association lamented, "They only make unreasonable demands and do not show a willingness to negotiate," and added, "The collective action by ready-mix concrete transport operators is clearly illegal. How long must we continue to be dragged along by such illegal acts?"

With no agreement reached and negotiations failing, the ready-mix concrete industry, which suffered losses from the Cargo Solidarity transport refusal, is once again facing a shutdown situation.

The scope of this transport refusal covers 158 ready-mix concrete companies across 14 metropolitan regions, accounting for about 40% of nationwide ready-mix concrete production. The average daily sales of ready-mix concrete manufacturers nationwide amount to approximately 56 billion won, and due to this transport refusal, metropolitan ready-mix concrete companies are expected to incur losses of about 22.4 billion won per day.

A ready-mix concrete industry official stated, "The illegal acts of transport operators exploiting the irreplaceability of concrete mixer trucks have been excessive every year," and expressed frustration, saying, "Despite the worsening business environment for ready-mix concrete manufacturers and serious issues such as construction site delays, the government remains passive, which is frustrating."