Construction Union Joins Sympathy Strike 'Shock'... Construction Companies Consider Requesting Extension of Project Duration

The scene of the Dunchon Jugong Apartment reconstruction site in Gangdong-gu, Seoul, where ready-mixed concrete pouring has been halted due to the Cargo Solidarity general strike. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Cha Wanyong] The construction industry is in shock following the solidarity strike by the National Construction Workers' Union (Construction Union) after the Cargo Solidarity Headquarters (Cargo Solidarity) strike. Although the government's order to resume work led to a slight recovery in cement shipments, raising expectations for progress at construction sites, work has come to a halt as some site workers affiliated with the Construction Union in certain regions (Busan, Ulsan, Gyeongnam) have refused to work.

The construction industry is concerned that the Construction Union's solidarity strike may spread nationwide and is struggling to coordinate work schedules due to consecutive strikes and the severe cold season. Ultimately, construction companies are reportedly considering applying for extensions on some construction project deadlines.

According to the construction industry on the 5th, the Busan, Ulsan, and Gyeongnam branches of the Korean Confederation of Trade Unions' Construction Division have instructed local union members to stop concrete pouring starting today, leading to actual work stoppages at construction sites in those regions. Even though ready-mixed concrete, which had been difficult to supply, has been delivered to sites, several projects have come to a complete halt because structural workers (rebar workers, carpenters, general laborers, etc.) have not reported to work. This is only the case at some sites. Most sites are still unable to properly receive ready-mixed concrete and rebar materials, leaving workers idle.

A representative from a construction company working in Ulsan said, “Although ready-mixed concrete started arriving last week and work resumed for a few days, from today there are no workers, so construction has completely stopped,” adding, “A schedule disruption of about a month can be covered to meet the planned deadline, but if this situation continues, we will likely have to apply for an extension.”

The construction industry holds the view that delays in project completion at construction sites are inevitable due to the consecutive strikes by Cargo Solidarity and the Construction Union. Delays in apartment construction sites are particularly concerning. If schedules are not met, delayed compensation payments to prospective residents and losses due to increased project financing (PF) costs for projects with guaranteed completion are expected.

A construction company official lamented, “The Cargo Solidarity strike has lasted nearly two weeks, and now with the Construction Union joining, the situation is frustrating,” adding, “Ultimately, the damage will be borne by the construction industry, prospective residents, and the public.”

He continued, “Within the company, we plan to conduct a thorough analysis of the construction site situation and damage status before reconsidering deadline extensions and additional cost occurrences.”