[Report] Despite Work Commencement Order, 'Cement Trailer' Stands Still at Busan New Port... Construction Industry Faces 'Cement Crisis,' Export Companies in Distress

Union members of the Cargo Solidarity participating in the strike are gathered at the Busan New Port Samgeori intersection on the afternoon of the 29th. Photo by Hwang Doo-yeol bsb03296@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong, Yeongnam Reporting Headquarters Reporter Hwang Duyul] As the government issued the first-ever work commencement order against those refusing transportation in the cement industry, a chilling silence hung over the Sinhang Samgeori intersection in Gangseo-gu, Busan, where cold darkness began on the afternoon of the 29th.

Union members participating in the Cargo Solidarity strike rally, which had continued since the morning, warmed themselves by lighting fires in empty drums. After 6 p.m., they were leaving the site, leaving behind the cold air.

About 30 to 40 union members still remained in tents, keeping their distance from the police deployed in preparation for any emergencies.

A cement company transport worker said, “The administrative order related to cement means that we were not recognized as workers before, but now we are. However, we have no particular countermeasures regarding the administrative order. We can only ignore it.”

He questioned, “Since the government is trying to suppress us, wouldn’t responding to each of these things only weaken us?”

He also conveyed the atmosphere from other unions, saying, “Since this is the first time such a thing has happened, everyone is confused, but they are all bewildered. Not only us, but the steel and metal sectors are also strongly opposing.”

On the sixth day of the Cargo Solidarity general strike, damage is rapidly spreading across the industrial sector in the Busan area.

This government action is the first case applied under the Cargo Transport Business Act since the work commencement order system was introduced in 2004, making it difficult to even gauge its impact.

The work commencement order targets about 2,500 cement transport workers nationwide. Over 200 cement transport companies across the country are also facing government on-site investigations.

The government is thoroughly identifying the names and addresses of truck owners who do business with transport companies, and the actual transport status and refusal to transport by truck owners are expected to be revealed one after another.

If trucks participating in collective transport refusal are confirmed, the transport business operators and transport workers who received the order must withdraw the collective transport refusal and return to transport duties by midnight the next day.

They cannot refuse without justifiable reasons, and refusal may result in imprisonment for up to three years or a fine of up to 30 million won. Violations may also lead to suspension or cancellation of cargo transport business and transport franchise business licenses.

Bulk cement trailer stopped on the roadside at the entrance of Busan New Port due to the Cargo Solidarity general strike. / Photo by Hwang Du-yeol bsb03296@

The conflict is intensifying as the Cargo Solidarity announced it would not comply with the government's work commencement order.

A Cargo Solidarity union member expressed anger, saying, “Is it reasonable for the government to punish arbitrarily, violating our law that prohibits forced labor? All crimes and punishments must be according to law, but I don’t know any world where the government enforces laws as it pleases.”

The ready-mix concrete industry and the related construction sector are among the hardest hit by the direct impact of the government and Cargo Solidarity’s ‘strong against strong’ standoff.

The first to be hit in this confrontation phase is the ready-mix concrete industry in Busan. The strike has halted the operation of bulk cement trailers (BCT), and ready-mix concrete inventory is rapidly depleting.

The industry estimates that due to the prolonged strike, current ready-mix concrete production is only about one-seventh of the usual level.

Especially, the ‘spark’ of the Cargo Solidarity strike is spreading significantly among ready-mix concrete companies near Busan Port.

Although long-term storage is difficult, companies near Busan Port have so far managed cement inventory easily because of their proximity.

A ready-mix concrete company official said, “While companies far away make one to three round trips to Busan Port daily, companies in the Busan area can make over ten round trips, so there was no need to hold many BCTs for inventory management.”

When the collective transport refusal occurred, areas far from Busan Port used a large number of company BCTs to load cement onto vehicles, but Busan companies had relatively fewer trailers, thus suffering a sudden blow.

However, if the strike prolongs, it is obvious that the entire country will fall into a ‘cement crisis.’

An official from a Busan company said, “Silos storing materials for ready-mix concrete and cement can hold about seven days’ worth of materials, but recently raw material prices have surged and supply is unstable, so inventories are depleting at each company. If the strike continues, a big disaster is inevitable.”

The crisis in the ready-mix concrete industry is expected to directly affect the construction industry.

A construction company official said, “If ready-mix concrete production and supply decrease, construction sites nationwide will be directly hit.”

Busan Port’s operating rate has also plummeted below 30%, causing export companies in Busan to suffer increasing damage like a snowball.

As the COVID-19 pandemic ended, exports seemed to be recovering in earnest, but the Cargo Solidarity strike has dealt a fatal blow, causing another setback. Companies facing year-end deadlines are left helpless.

An export company representative said, “Due to the strike, we failed to enter Busan Port and delayed delivery, but we still cannot secure containers, so we are at a loss. Container drivers are scared of Cargo Solidarity and are unwilling to move.”

Earlier in Gyeongnam, union members held a general strike victory resolution rally at 2:10 p.m. that day.

At Gapo New Port in Masanhappo-gu, Changwon City, six executives including the Gyeongnam headquarters chief and deputy chief held a head-shaving ceremony.

After the head-shaving ceremony, about 300 union members marched 1.3 km to the Korea Oil Pipeline Corporation.

In Jinhae-gu near Busan New Port, from 2 p.m. that day, about 200 members of the Consignment Headquarters held a resolution rally on the two lower lanes in front of the west gate of the new port.

After the head-shaving ceremony and declaration of struggle, they marched 1.5 km toward Hanjin Terminal starting at 2:50 p.m.

The Cargo Solidarity Gyeongnam Headquarters demanded the abolition of the safety freight sunset clause and expansion of vehicle types and items, stating, “We pledge to win the struggle of cargo workers against government oppression.”