Won Hee-ryong Warns "If Cargo Solidarity Does Not Return, 'Complete Abolition of the Safe Freight Rate System'"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] Won Hee-ryong, Minister of Land, Infrastructure and Transport, warned that if the cargo truck drivers do not return to work, the complete abolition of the cargo truck safety freight rate system could be considered.

The Ministry of Land, Infrastructure and Transport and the Cargo Solidarity negotiation team held their second negotiation around 2 p.m. yesterday at the Government Complex Sejong, but the talks broke down after 40 minutes. This was two days after the last negotiation on the 28th of last month and just one day after the work commencement order was issued for cement transport workers.

The Cargo Solidarity demanded the permanent implementation of the safety freight rate system and an expansion of the applicable items, while the government maintained its existing position that only a three-year extension of the safety freight rate sunset clause could be accepted. The Cargo Solidarity stated, “We came with a sincere negotiation proposal, but due to the government’s statement that negotiation was impossible, we could not continue the dialogue.”

After the second meeting, Minister Won said at a press conference held at the Government Complex Sejong, “There are issues and reviews not only about whether the safety freight rate system should sunset but also about whether it is a proper system,” adding, “(Abolition and other options) can be considered from various angles.”

He emphasized, “Price is a core element of market operation, but among various stakeholders, one side fixes prices at will and stops the system if they don’t like it. There is no market structure like this anywhere,” and added, “Even socialist countries do not set prices like this.”

Furthermore, Minister Won mentioned the possibility of excluding the fuel price-linked subsidy that supports the excess amount if the diesel price for cargo trucks exceeds the standard amount.

He said, “Subsidies are given on the premise of a legitimate contribution to cargo transportation, but if they refuse transportation for their own benefit at every opportunity, is there really a basis to provide subsidies?” and added, “There will be corresponding responses depending on how the Cargo Solidarity judges their duty to contribute to the national economy.”

An investigation team composed of the Ministry of Land, Infrastructure and Transport, local governments, and the police conducted on-site inspections and delivered work commencement orders to cement transport companies until the day before last month.