{"id":2199589,"date":"2022-11-29T09:43:00","date_gmt":"2022-11-29T09:43:00","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2199589"},"modified":"2023-04-05T16:10:54","modified_gmt":"2023-04-05T07:10:54","slug":"yoon-suk-yeol-faces-off-against-unions-as-strike-threatens-south-korean-economy","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/11\/yoon-suk-yeol-faces-off-against-unions-as-strike-threatens-south-korean-economy\/","title":{"rendered":"Yoon Suk-yeol faces off against unions as strike threatens South Korean economy"},"content":{"rendered":"

Following state council deliberations, South Korea’s transport ministry said it would issue an unprecedented <\/span>return-to-work order under Article 14 of the Transport Truck Business Act<\/a><\/span> on Tuesday. The order applies to cement truck drivers participating in a general trucking strike, which has now entered its sixth day.\u00a0<\/span><\/p>\n

The government says the Cargo Truckers Solidarity Union (CTSU) strike costs the economy some $225 million (300 billion KRW) every day it continues, and Yoon is now promising that any worker who continues to strike will face criminal prosecution of <\/span>up to three years imprisonment and a fine of up to 30 million won<\/a><\/span>.<\/span><\/p>\n

The strike began on Nov. 24, when about 6% of South Korea\u2019s truck drivers <\/span>engaged in strike action<\/span><\/a> for the second time this year.<\/span><\/p>\n

After the transport ministry reached a tentative agreement with CTSU <\/span>in early June<\/span><\/a>, some 22,000 members demanded assurances the government would extend minimum wage guarantees and expand the scope of guarantees to additional cargo categories. The government also pledged to review the increasing fuel subsidies for truck drivers amid rising global gas prices.\u00a0\u00a0<\/span><\/p>\n

The June strikes disrupted supply chains and caused $1.25 billion (<\/span>1.6 trillion KRW<\/span><\/a>) in collective losses across industries, including petrochemicals, steelmaking, auto manufacturing, and cement production, among others. However, the agreement proved only to be a stop-gap measure <\/span>dependent on an unfulfilled legislative amendment<\/a><\/span>, thus leading to the second strike destabilizing South Korea\u2019s economic growth trajectory.\u00a0<\/span><\/p>\n

\"\"

Photo of a gas station pump in Seoul, which could soon be empty due to the truckers\u2019 strike | Image: YunHo Lee via Flickr<\/a>\u00a0<\/span><\/p><\/div>\n

GRINDING TO A HALT<\/b><\/p>\n

A key issue is the Safe Trucking Freight Rate System, which<\/span> came into effect in Jan. 2020<\/span><\/a>. By setting a minimum floor for safe transport rates (paid by clients to transport companies) and safe contracting rates (paid by transport companies to drivers), the system intends to disincentivize driving while fatigued, speeding and the dangerous overloading of cargo.<\/span><\/p>\n

The CTSU wants the Safe Trucking Freight Rate System <\/span>protected in perpetuity<\/span><\/a>, but existing provisions in the <\/span>Trucking Transport Business Act<\/span><\/a> (TTBA) are only valid until Dec. 31, and the fear of expiry has raised the strike\u2019s stakes. The government <\/span>proposed a maximum three-year extension to placate the union<\/span><\/a>, but the union considers any sunset clause unacceptable. <\/span><\/p>\n

The opposition, which supports the CTSU\u2019s demand, has argued that social conflict <\/span>can be expected every time the expiration date comes up in the future<\/a><\/span>. It is inferred that the government believes it is still too early to empirically conclude the system\u2019s impact on industry structure, working conditions and road safety.\u00a0<\/span><\/p>\n

On Nov. 28, ahead of the first round of failed negotiations, the transportation ministry <\/span>upgraded the land freight transportation crisis rating to the highest of four levels<\/span><\/a>, reflecting disruptions to logistics networks nationwide. Container imports and exports stood at <\/span>49% of normal levels<\/span><\/a> at 12 South Korean ports, with three virtually closed.<\/span><\/p>\n

Cement and ready-mixed concrete are transported at <\/span>11 and 15% of normal rates<\/span><\/a>, respectively. Over half of the nation\u2019s <\/span>912 construction sites<\/span><\/a> have stopped pouring ready-mixed concrete, raising the prospects of a complete shutdown that would precipitate structural damage, project delays and lack of work for many day laborers.<\/span><\/p>\n

Consumers will feel a squeeze at the pumps as some gas stations are already running out of gasoline and diesel. Between <\/span>70 to 80% of truckers<\/span><\/a> that deliver fuel to four of South Korea\u2019s largest oil refiners \u2013 <\/span>SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank<\/span> \u2013 are members of the CTSU.\u00a0<\/span><\/p>\n

\"\"

Supporters of the Yellow Envelope Laws rally against President Yoon Seok-yeol and First Lady Kim Keon-hee at a protest in front of Seoul City Hall on Nov. 19, 2022 | Image: Jack Greenberg<\/p><\/div>\n

LEFT VS RIGHT<\/b><\/p>\n

Former presidential candidate and leader of the minor Justice Party, Sim Sang-jung has <\/span>proposed an amendment<\/span><\/a> to the TTBA that would delete the sunset clause and expand the number of freight categories covered by a safe rate system.<\/span><\/p>\n

The Democratic Party (DP), with its large majority in the National Assembly, has adopted a more ambiguous position that falls short of extending unequivocal support to the truckers.\u00a0<\/span><\/p>\n

Although the DP pledged to accelerate a <\/span>legislative expansion<\/span><\/a> of a safe rate system, as well as the \u2018<\/span>Yellow Envelope Laws<\/span><\/a>\u2019 by the end of the year that would amend Articles 2 and 3 of the Trade Union and Labour Relations Adjustment Act (TULRAA), most of its public messaging related to the strike thus far has criticized President Yoon Seok-yeol for <\/span>threatening workers with retaliation<\/span><\/a>.\u00a0<\/span><\/p>\n

Revising Article 2 of that trade act would expand the definition of employers to include those responsible for subcontractors. On the other hand, an amended Article 3 would impose an absolute ban on employers claiming damages against trade unions or individual workers, as has been observed in cases involving <\/span>HiteJinro,<\/span><\/a> Daewoo Shipbuilding and Marine Engineering<\/span><\/a> and <\/span>Ssangyong Motor<\/span><\/a>, among others.<\/span><\/p>\n

THE BUCK STOPS HERE?<\/b><\/p>\n

However, the Yoon administration has characterized the ongoing strikes as <\/span>\u2018illegal\u2019 and \u2018violent,\u2019<\/span><\/a> and this characterization stems from the dichotomy between legitimate and illegitimate industrial action in South Korean law.<\/span><\/p>\n

Whereas <\/span>Article 33(1) of the ROK Constitution<\/span><\/a> and <\/span>Article 1 of TULRAA<\/span><\/a> acknowledge the right to collective action, this is caveated by <\/span>Article 314 of the Criminal Code<\/span><\/a> and <\/span>Articles 4 and 42 of TULRAA,<\/span><\/a> which prohibit the stopping, close, or interruption of business operations through acts of violence or the destruction of property or facilities.<\/span><\/p>\n

Strikes must be led by recognized trade unions and approved through a majority vote of their members. Additionally, sympathetic strikes and those relating to politics or matters of state governance are <\/span>strictly prohibited<\/span><\/a>.\u00a0\u00a0\u00a0<\/span><\/p>\n

President Yoon\u2019s <\/span>legal background<\/span><\/a> and <\/span>business-friendly attitude<\/span><\/a> mean there is a high likelihood the current ROK government will approach the strikes as unlawful disruptions, exposing unions and individual workers to criminal and civil liability even if the unlawfulness of their action does not substantially violate the spirit of the law.\u00a0<\/span><\/p>\n

The latter would permit the peremptory freezing of assets, putting workers\u2019 lives in limbo as claims and appeals slowly work their way through the courts.<\/span><\/p>\n

Proponents of the \u2018Yellow Envelope Laws\u2019 argue the ruling party is threatening the right to engage in collective action and that indemnification suits can financially cripple unions, their representatives and members. But the polarization of national politics and <\/span>the threat of a presidential veto<\/span><\/a> makes it unlikely that lawmakers will ratify these laws.<\/span><\/p>\n

Edited by John Lee<\/span><\/em><\/p>\n

Business & Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

Following state council deliberations, South Korea’s transport ministry said it would issue an unprecedented return-to-work order under Article 14 of the Transport Truck Business Act on Tuesday. The order applies to cement truck drivers participating in a general trucking strike, which has now entered its sixth day.\u00a0 The government says the Cargo Truckers Solidarity Union […]<\/p>\n","protected":false},"author":10207,"featured_media":2199593,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24],"class_list":["post-2199589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy"],"yoast_head":"\nYoon Suk-yeol faces off against unions as strike threatens South Korean economy - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/11\/yoon-suk-yeol-faces-off-against-unions-as-strike-threatens-south-korean-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Yoon Suk-yeol faces off against unions as strike threatens South Korean economy - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"Following state council deliberations, South Korea’s transport ministry said it would issue an unprecedented return-to-work order under Article 14 of the Transport Truck Business Act on Tuesday. 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