On the 24th, when the Cargo Solidarity entered an indefinite general strike, members of the Cargo Solidarity held a send-off ceremony near the Uiwang Inland Container Terminal in Gyeonggi-do. Photo by Dongju Yoon doso7@
First Negotiation Ends Without Progress
Second Negotiation Schedule Yet to Be Set
Possibility of Behind-the-Scenes Talks Between Both Sides
[Asia Economy Reporter Kim Min-young] As the logistics crisis intensifies due to the Cargo Solidarity strike, attention is focused on the possibility of a second negotiation between the government and the Cargo Solidarity. If the strike prolongs amid an economic downturn and rising inflation increasing corporate financial burdens, losses amounting to trillions of won could occur. Voices are calling for the second negotiation to be expedited to narrow the differences over the contentious Safe Freight Rate System.
◇ First Negotiation Ends Without Results... Possibility of Behind-the-Scenes Talks = On the 25th, Cargo Solidarity plans to urge the expansion of the Safe Freight Rate System in front of the Yongsan Presidential Office at 10 a.m. The rally held at 10 a.m. the previous day saw about 10,000 participants, representing 44% of all union members, signaling the start of the strike.
On the first day of the Cargo Solidarity strike, the Ministry of Land, Infrastructure and Transport (MOLIT) announced that Deputy Minister Eo Myung-so visited the Uiwang ICD in Gyeonggi Province and held talks with Cargo Solidarity Chairman Lee Bong-ju. MOLIT stated, "We are always ready to engage in dialogue regarding the reasonable demands of Cargo Solidarity and will actively work to resolve the issue." They added that the bill including the deletion of the Safe Freight Rate, which was criticized as a regression, was withdrawn on the 22nd.
In response, Cargo Solidarity immediately rebutted. They said the meeting between Deputy Minister Eo and Chairman Lee was held without prior coordination and lasted only about five minutes. A Cargo Solidarity official said, "Chairman Lee protested the unilateral visit without any change in MOLIT’s stance and conveyed through an official letter the position to conduct formal negotiations," adding, "MOLIT is trying to portray it as if a dialogue took place."
The schedule for the second negotiation has not yet been set. A Cargo Solidarity official said, "We have not yet received an official letter from MOLIT regarding a request for the second negotiation." A MOLIT official said, "It has not been finalized yet."
Previously, at the proposal of Cargo Solidarity, the first negotiation with MOLIT took place on the 15th, but it is known that only the differences in positions were confirmed with no progress in discussions. A Cargo Solidarity official said, "The more we discussed, the more we reaffirmed that it would be difficult to reach an agreement with MOLIT."
However, as with the first strike, there is a possibility of behind-the-scenes negotiations between the two sides. During the eight-day strike in June, as the logistics situation worsened, behind-the-scenes negotiations took place over a compromise plan, leading to a sudden agreement between both sides. Although the government warned of a tough response by threatening to issue a transport commencement order to Cargo Solidarity if the strike caused a serious national economic crisis, this measure is likely to be reserved as a last resort since it can prevent immediate logistics chaos but is not a fundamental solution to the current situation. Unless the Safe Freight Rate System, which triggered the strike, is resolved, Cargo Solidarity may strike again citing their right to livelihood. For this reason, there is speculation that the government will come to the table with a compromise plan before a second strike prolongs.
◇ Two Weeks as the Margin to Endure the Strike... Preparing with Material Stockpiling and Pre-Transportation = Construction companies see two weeks as the margin to endure the Cargo Solidarity strike. Due to repeated strikes, they have learned from experience and immediately prepared countermeasures after the strike was announced. Construction companies have pre-stocked materials needed at construction sites in case material deliveries are disrupted due to the strike. They have also prepared project schedule scenarios assuming construction cannot proceed as planned. For example, they have planned to switch processes, such as replacing concrete work with pipe installation.
A representative from Company A said, "We have secured enough materials to endure up to two weeks after the strike begins," adding, "However, if the strike prolongs beyond a month, even concentrated overtime work cannot offset the delays, so we hope the strike ends within two weeks."
The Ministry of Land, Infrastructure and Transport and the Ministry of Trade, Industry and Energy also encouraged cargo owners to conduct pre-transportation and secure alternative vehicles to minimize the logistics crisis as signs of the Cargo Solidarity strike appeared.
A MOLIT official said, "Due to the learning effect from the June strike, we prepared countermeasures as soon as the Cargo Solidarity announced the strike," adding, "MOLIT and the Ministry of Trade, Industry and Energy encouraged pre-transportation, and cargo owners either transported goods in advance or secured alternative vehicles depending on the cargo type."
The Korea Railroad Corporation’s National Railway Labor Union, currently engaged in lawful struggle, has announced a full strike on the 2nd of next month. Korail plans to mobilize all available personnel, but if train operations are suspended or delayed, public inconvenience is expected to be unavoidable.
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