Wage Negotiations Reach Impasse
Bus Union to Hold Strike Authorization Vote on May 23
The labor and management of Changwon's city bus companies failed to reach an agreement during the first round of negotiations at the Gyeongnam Regional Labor Relations Commission, raising concerns that city bus services may come to a halt.
Changwon Special City in Gyeongnam has disclosed the progress of the ongoing 2025 wage and collective bargaining negotiations between city bus labor and management, explaining the current state of labor-management conflict.
The labor and management of the nine city bus companies operating under the quasi-public management system applied for mediation to the Gyeongnam Regional Labor Relations Commission on May 12, after a total of seven failed negotiation attempts?five rounds of talks and two rounds of preliminary mediation?since December 20 of last year.
On May 22, starting at 2:00 p.m., labor and management held the first mediation meeting at the Gyeongnam Regional Labor Relations Commission in an effort to reach a compromise. However, they failed to produce any results, and the mediation ended without agreement. The final negotiations are scheduled to take place at the second mediation meeting on May 27.
The labor union plans to secure the legal right to strike by conducting a strike authorization vote starting at 10:00 a.m. on May 23.
This situation contrasts with last year, when, for the first time in the Gyeongnam region, the pre-mediation support system of the Regional Labor Relations Commission was utilized to reach an amicable agreement without proceeding to the mediation stage for the first time in ten years.
The intensification of conflict between labor and management appears to be the result of a Supreme Court en banc ruling on December 19, 2024, which changed the criteria for ordinary wages.
Management maintains that the wage system must be restructured in this round of negotiations to minimize the wage increase effect resulting from the ordinary wage ruling and thereby alleviate financial burdens. In contrast, the labor union insists that issues related to ordinary wages and wage negotiations should be addressed separately and handled individually.
A city official stated, "In this round of negotiations, both labor and management have actively engaged in talks from the outset to improve working conditions for employees and resolve outstanding issues. However, as the ordinary wage issue has become more prominent, negotiations are now facing difficulties."
As labor-management conflict over ordinary wages has intensified, the city attended a joint countermeasure meeting of cities and provinces hosted by the Seoul Metropolitan Government on May 7, to review the status of wage negotiations by region, examine the increase in transportation costs resulting from the inclusion of ordinary wages, and discuss strengthening cooperation among local governments.
This situation is expected to lead to a joint strike by labor unions in 11 regions, including Changwon, Seoul, Busan, Ulsan, Gyeonggi, and Jeju, where the ordinary wage issue is relevant.
Lee Jonggeun, Director of the Transportation and Construction Bureau, said, "The ordinary wage issue is a major topic for labor nationwide. As the outcome of these negotiations is directly linked to the city's financial burden, we are continuing dialogue with the bus industry. We will do our utmost to develop a reasonable settlement."
With negotiations at an impasse, Changwon City has established an emergency transportation plan to minimize inconvenience to citizens in the event of a bus strike and plans to operate temporary routes.
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