HiteJinro Resumes Beer Shipment from Gangwon Factory
Secures Access Roads for Smooth Transportation
HiteJinro "Deploying 200 Vehicles by Today"
Prolonged Labor Union Conflicts in Liquor Industry...Concerns Over Peak Season Crisis
Liquor Industry "Government Must Actively Intervene in Illegal Situations"
On the morning of the 8th, a logistics vehicle that completed loading products at the Hite Jinro Gangwon factory in Hongcheon-gun, Gangwon-do, is departing for transportation. Photo by Hite Jinro
[Asia Economy Reporter Song Seung-yoon] HiteJinro, which faced disruptions in beer shipments during the summer peak season due to protests by the Cargo Solidarity under the Korean Public Service and Transport Workers' Union of the Korean Confederation of Trade Unions, is deploying a large number of headquarters employees to its Gangwon factory to carry out beer product shipment operations.
According to HiteJinro on the 8th, from 8 a.m. that day, about 200 headquarters employees were deployed to the Gangwon factory in Hongcheon-gun, Gangwon Province, to carry out product shipment work. Approximately two platoons of police officers from the Gangwon Provincial Police Agency and Hongcheon Police Station were also deployed on site. It is reported that about 50 members of the Cargo Solidarity remained at the site. The police are securing access routes while controlling both sides of the entrance. Employees on site are also managing vehicle control.
As of 2 p.m., about 57 vehicles had entered the Gangwon factory, completed loading beer products, and finished shipments. Since the access routes have been secured without disruption since the morning, there have been no physical clashes between Cargo Solidarity union members and employees during the entry and exit process. HiteJinro plans to secure up to 200 vehicles for shipment operations in the afternoon and ship the usual daily volume of 120,000 boxes as scheduled. However, tensions remain high as the standoff continues on site.
A HiteJinro official said, "Thanks to the efforts of the police and employees, shipments are proceeding without any major conflicts so far," adding, "For now, we plan to mobilize 200 logistics vehicles today to maximize the shipment rate."
This is the first time that employees have been directly deployed to carry out shipments following the conflict between HiteJinro and the Cargo Solidarity. Since the 2nd, the Gangwon factory of HiteJinro has experienced shipment disruptions due to protests by the Cargo Solidarity. The Cargo Solidarity occupied and staged sit-ins at the factory entrance using trucks and other vehicles. The Gangwon factory, which produces beer products such as Terra, Hite, Max, and Filite, accounts for the largest production share among HiteJinro's beer factories. However, since that day, shipments have either not been made at all or have been significantly below normal levels, with the shipment rate at about 25% of usual. On the first day of the protest, the 2nd and 3rd, no products were shipped, and on the 4th (76%) and 5th (25%), shipment rates were significantly lower than usual. No products were shipped on the weekend of the 6th and 7th either.
The conflict between HiteJinro and the Cargo Solidarity has continued for five months. About 130 truck owners affiliated with Suyang Logistics, HiteJinro's contracted freight carrier, joined the Cargo Solidarity under the Korean Confederation of Trade Unions at the end of March and went on strike. Starting with a partial strike in March, they launched a full strike in June, and since the Cargo Solidarity's general strike, they have continued obstructive actions such as illegally parking trucks near the entrances of the Icheon and Cheongju factories or blocking access routes. They are demanding increases in transportation fees and empty bottle transportation charges, as well as payments for vehicle advertising, idling, and waiting costs.
HiteJinro is responding by filing civil and criminal lawsuits against those involved in illegal activities and actively requesting crackdowns from local governments and the police, but the truck owners' resistance is intensifying. On the 22nd of last month, 29 union members were arrested on the spot for illegal activities during a rally at the HiteJinro Cheongju factory, and at the Gangwon factory on the 4th and 5th, union members who blocked logistics vehicle movement and did not comply with dispersal orders were also arrested on the spot. The police have requested arrest warrants for four of them. This is the first case under the Yoon Seok-yeol administration where the police used physical force to forcibly disperse illegal protests.
HiteJinro estimates that direct losses calculated since the full transportation refusal began in June amount to about 5 to 6 billion KRW. Considering overall losses including production and sales, the total damage is estimated to be in the range of 10 to 20 billion KRW.
Within the alcoholic beverage industry, concerns continue to grow that ongoing labor disputes could disrupt the supply of alcoholic products during the peak summer season. OB Beer, the number one beer company, is also facing ongoing labor conflicts with the possibility of strikes looming, raising fears that this could escalate into a widespread 'beer crisis.'
An industry insider said, "The longer the strike situation continues, the more losses accumulate for companies in various areas," adding, "Especially since the protests are continuing targeting the summer beer peak season, the government should actively deploy public authority to crack down on illegal activities."
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