After Work Resumption Order, Cement and Remicon Industry Appeals for 'Return to Transportation'

Cement "Factories Expected to Halt Production Late This Week, Urging Prompt Transport Resumption"
Ready-Mix Concrete "Most Factories Have Stopped Operations, Damage Spreads Due to Prolonged Transport Refusal"

Members of the Cargo Solidarity Union Chungbuk Branch are blocking non-union freight vehicles in front of the main gate of Sungshin Cement Danyang Plant on the 29th, urging them to join the strike.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] Following the government's issuance of a work commencement order for cement transport workers, the cement and ready-mixed concrete (Remicon) industries are urging the Cargo Solidarity, a freight union under the Korean Confederation of Trade Unions Public Transport Union (hereafter Cargo Solidarity), to promptly resume transportation.

According to the cement and Remicon industries on the 30th, the cement sector has recorded cumulative losses of 82.1 billion KRW due to the Cargo Solidarity's general strike. Of the approximately 200,000 tons scheduled for shipment on the 29th, only 21,000 tons were shipped, leaving 179,000 tons unshipped. This translates to a sales loss of about 17.9 billion KRW for that day, with cumulative sales losses reaching 82.1 billion KRW.

With the help of law enforcement (police), some cement shipments were made from plants in Donghae, Danyang, Jecheon, and distribution bases in Daejeon, Gunsan, Cheongju, and Daegu; however, the cement industry explains that these quantities are far too insufficient to recover from the shipment disruptions.

A manager at a cement plant in Danyang, Chungbuk, said, "Cargo Solidarity union members are strongly opposing the government's work commencement order," adding, "Non-union members are also cautious of the union members, making it unpredictable whether they will participate in transportation. This morning's situation is not much different from yesterday."

The damage to the Remicon industry is also spreading. The Korea Ready-Mixed Concrete Industrial Cooperative reported that based on an average daily supply of 700,000 cubic meters last month, they are losing 61.7 billion KRW per day. Due to the Cargo Solidarity's collective refusal to transport, cement supply has been cut off, causing 23,100 workers nationwide to be idle and putting production at 945 Remicon plants across the country at risk of suspension.

A representative of a major Remicon company in the metropolitan area said, "Compared to last week, Remicon shipments have decreased by 95%, and most factories have stopped operating," expressing concern that "concrete pouring must be completed before entering the off-season winter period, but the prolonged transport refusal by Cargo Solidarity is causing increasing damage."

The Ministry of Land, Infrastructure and Transport and Cargo Solidarity are scheduled to hold a second meeting at the Government Sejong Complex this afternoon. Although they are meeting again just two days after the first meeting on the 28th, negotiations are expected to be difficult. The Ministry clearly stated in the first meeting that the Safe Freight Rate system would be extended for three years but without expanding the applicable items, while Cargo Solidarity has not backed down from its demand for permanent implementation of the Safe Freight Rate system and expansion of applicable items. With both sides firmly opposed and the work commencement order issued, the government and the union are locked in a strong confrontation.

Regardless of this atmosphere, the cement industry is in urgent need. There is no more space to stockpile, so cement production must stop. A representative of the Korea Cement Association said, "By the end of this week, silos will be full, and some plants will have to stop cement production," urging, "Since the work commencement order has been issued, please return to transportation promptly."