South Korea: Cargo union strike may hit the scrap market hard

The National Public Transport and Social Service Labor Union Cargo Solidarity Headquarters of the Korean Confederation of Trade Unions (KCTU) has declared that it will go on a nationwide strike starting 24 November 2022.

The strike might delay scrap storage activities and block steelmakers’ transport of finished products as was seen during the Korea Cargo Workers’ Union’s strike in June this year.

The cargo union is preparing for an indefinite national strike that will begin at midnight of 24 November and may last until the end of the ordinary National Assembly in early December.

Impact of previous strike 
The cargo union’s eight-day strike cost the scrap sector an estimated KRW 1 trillion in June. But if the current strike continues longer or intensifies, the possibility of much higher losses can’t be ruled out.

The scrap transportation industry is keenly aware of the possible impact of the strike.

Comments from industry 

• “Even with the cargo union’s strike, the direct impact of scrap distribution vehicles will be quite minimal compared to other steel transportation,” a representative from the scrap industry stated.
• According to an official of Korea Cargo Solidarity, “There are relatively few drivers who earn wages from shippers among the container and cement cargo drivers who are subject to the safe fee system.”
• “If the National Assembly and the administration do not come up with measures to remove the safe fare system sunset till the New Year, the cargo union has no alternative but to wage a greater battle,” a representative of the cargo union said.
• The reason being that “discussions have not advanced since the strike was put on hold last summer, and there is no backing down at this point,” the representative added.
  

The National Assembly’s Land, Infrastructure and Transport Committee is considering requests from the cargo union, such as ending the safe fare system sunset, but there is only a maximum of two weeks to consider and vote on these issues.

Note: This article has been published in accordance with an article exchange agreement between SteelDaily and SteelMint.