Cargo Solidarity Strike Enters Fourth Day, Nationwide Logistics Disruptions... First Negotiation on 28th

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The Cargo Solidarity and the Ministry of Land, Infrastructure and Transport will hold their first negotiation at 2 p.m. on the 28th at the Government Sejong Complex. As the Cargo Solidarity strike enters its fourth day, logistics disruptions are occurring across the country.

The Cargo Solidarity Headquarters of the Korean Confederation of Trade Unions Public Transport Workers' Union (Cargo Solidarity) and the Ministry of Land, Infrastructure and Transport, the government's counterpart, will hold a working-level meeting at the Government Sejong Complex on the 28th. This is the first dialogue between the two sides in 15 days since the negotiation held on the 15th.

The Ministry of Land, Infrastructure and Transport previously requested dialogue with Cargo Solidarity, warning that a prolonged collective transport refusal would cause irreversible damage to the national economy, and Cargo Solidarity accepted the request.

Executives from both Cargo Solidarity and the Ministry of Land, Infrastructure and Transport are expected to exchange opinions on whether to abolish the sunset clause of the Safe Freight Rate System during this negotiation. However, since Cargo Solidarity is urging the permanent establishment of the Safe Freight Rate System and the Ministry has announced a three-year extension, their positions differ, making an agreement unlikely.

According to the Ministry, as of 10 a.m. on the 27th, about 4,300 union members participated in the collective transport refusal, accounting for 19.5% of the total union members.

The Ministry explained that the container storage rate at 12 nationwide ports?the ratio of containers actually stored compared to storage capacity?was 62.6%, which is at normal levels. The storage rate refers to the ratio of containers actually stored relative to the port's container storage capacity.

However, the volume of container imports and exports recorded from 5 p.m. yesterday to 10 a.m. today was 6,208 TEU, which is about 17% of the usual level, showing a significant decrease.

The industrial damage is more direct. According to the Korea Cement Association, although 103,000 tons of cement shipment was planned the previous day, actual shipment was only 9%, or 9,000 tons, due to the Cargo Solidarity strike. The damage amount reached 9.4 billion KRW on the previous day alone, accumulating to 46.4 billion KRW.

The longer the strike continues, the more the government is expected to increase pressure to end it. There are also speculations that an order to resume work could be reviewed and decided at the Cabinet meeting as early as the 29th.