Possibility of Reaching a Ready-Mix Concrete Transport Cost Agreement Within 3 Days

Ready-mix Concrete Manufacturers Propose 21% Two-Year Gradual Increase; Transport Union Responds 'Positive'
Transport Union: "We Are Finding Some Common Ground"

On the morning of the 1st, participants are shouting slogans at the Rally to Defend the Right to Live for Ready-Mix Concrete Transport Workers held in front of Donghwa Duty Free Shop in Jongno-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] As the transportation labor union of ready-mixed concrete (Remicon) and the manufacturers of ready-mixed concrete have found common ground in their transportation fee negotiations, there is a high possibility of reaching an agreement on the 3rd.

The transportation union is demanding a 27% increase in transportation fees from 56,000 won per trip to 71,000 won, 100% coverage of urea solution costs, a 1 million won holiday bonus, a 1 million won time-off allowance, and performance bonuses of 1 million won per person twice a year.

The ready-mixed concrete manufacturers proposed a mediation plan during negotiations on the 1st to raise the transportation fee by about 21% to 68,000 won, but to do so gradually over two years. The industry suggested splitting the increase into 5,500 won this year and 7,500 won next year, which is less than the 27% increase demanded by the transportation union. Regarding this, labor ministry investigators present at the negotiation mediated a plan to pay 7,500 won this year and 5,500 won next year, and the transportation union postponed their decision.

Both sides will resume negotiations at 10 a.m. on the 3rd. The transportation union plans to initiate a collective transportation refusal involving about 8,000 union members starting on the 4th if their demand for increased transportation fees is not accepted in the additional negotiations; however, the likelihood of collective action appears low.

A representative of the transportation union said on the 2nd, "It is true that we are finding some common ground," and hinted that an agreement is imminent by adding, "Since this is work done by people, there is no reason we cannot come to an understanding."

A representative of the ready-mixed concrete industry said, "Due to the one-day transportation refusal on the 1st, 95% of ready-mixed concrete plants in the metropolitan area stopped operations," and added, "Although demand for ready-mixed concrete is relatively low due to the rainy season, if the transportation refusal period is prolonged, construction sites will inevitably come to a complete halt."