Ruling Party and Government: "Safety Freight Rate System Extended for 3 Years... Expansion of Items Demanded by Unions Not Possible" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy reporters Lee Ji-eun and Kwon Hyun-ji] As the Cargo Solidarity announced a general strike on the 24th demanding the extension and expansion of the Safe Freight Rate System, the ruling party and government held an emergency meeting on the 22nd and concluded with the stance of '3-year extension of the Safe Freight Rate System sunset clause and no expansion of items.'

Seong Il-jong, chairman of the People Power Party's Policy Committee, said to reporters immediately after the party-government meeting, "As a result of the discussion, the ruling party and government concluded to extend the sunset clause of the Safe Freight Rate System but not to expand the items," adding, "This decision was made considering the recent high oil prices and the opinions of stakeholders."

Regarding the five items for which the Cargo Solidarity is demanding additional application of the Safe Freight Rate System ? ▲automobiles ▲steel products ▲hazardous materials ▲feed and grains ▲parcel delivery main and branch lines ? he said, "Since the income level of the drivers is relatively good and applying the system would increase logistics costs borne by the public, it was decided not to expand the items to minimize the burden on the people."

Chairman Seong said, "The wages of the drivers in the items proposed for expansion are by no means low. In some cases, they are close to 5 to 6 million won per month, so such demands lack justification," adding, "If they start a collective transport refusal, holding the national industry and economy hostage for their own power expansion, the people will deliver a stern judgment."

He also said, "Among the 38 OECD countries, Korea is the only country where the government sets freight rates and enforces penalties," adding, "this shows how much the state protects the Cargo Solidarity and the drivers."

He urged the Cargo Solidarity to withdraw the strike. Chairman Seong said, "Given the current poor state of the national economy due to soaring prices and interest rate hikes, if the Cargo Solidarity shockingly goes on strike from the 24th, significant damage is expected," adding, "we ask them to face this reality and withdraw the strike once again."

He also warned of strict legal action if the strike is carried out. He said, "If the Cargo Solidarity refuses collective transport as announced, the party has requested strict handling according to law and principles," adding, "The government also responded that it will respond strictly according to law and principles."

In response to a reporter's question whether the ruling party aligned with President Yoon Suk-yeol's call for strict response to the Cargo Solidarity's strike, he said, "Rather than following because President Yoon said so, this issue also occurred five months ago," adding, "Now is an economic crisis situation, and we ask the economic actors, including the Cargo Solidarity, to join in concentrating and gathering all efforts to overcome this crisis."