👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

South Korea's Yoon prepares to widen back-to-work order amid truckers' strike

Published 12/04/2022, 06:19 AM
Updated 12/04/2022, 06:26 AM
© Reuters. Containers holding tires are stacked at a yard of a tire factory on the 11th day of a nationwide strike by truckers in Daejeon, South Korea December 4, 2022. Yonhap via REUTERS

By Choonsik Yoo and Josh Smith

SEOUL (Reuters) - South Korean President Yoon Suk-yeol on Sunday ordered preparations for widening a back-to-work order beyond the cement industry amid a prolonged truckers' strike.

Thousands of South Korean truckers have been on strike for more than 10 days, with negotiators for the government and unions making no progress on disagreements over minimum pay rules.

Yoon, a conservative, on Tuesday invoked a "start work" order, the first in the country's history, on 2,500 drivers in the cement industry, requiring them to return to the road or face penalties.

On Sunday Yoon called on government ministers to make preparations to issue a return-to-work order on such sectors as oil refining and steelmaking, where additional damage is expected, spokesperson Lee Jae-myoung said in a statement.

Yoon called for punishment of those violating laws during the strike, ordering ministers to take action to minimise damage, such as employing alternative drivers, military personnel and military equipment.

The Korean Confederation of Trade Unions, an umbrella group, is planning a general strike for Tuesday.

"I cannot but regard this planned strike as a politically motivated action, rather than one aimed at representing the workers' rights," Yoon said, according to Lee, signalling a potentially harsh reaction from the government.

"Holding the people's living and national economy hostage at this time of economic difficulty makes the survival of weak, unorganised workers harder and deprives future generations and the general public of their future jobs," Yoon said.

The strikes have disrupted South Korea's supply chain, and cost 1.6 trillion won ($1.2 billion) in lost shipments over the first seven days, the industry ministry said on Thursday.

© Reuters. Containers holding tires are stacked at a yard of a tire factory on the 11th day of a nationwide strike by truckers in Daejeon, South Korea December 4, 2022. Yonhap via REUTERS

The government has said it would not expand a minimum pay system for truckers beyond a further three years. The union says it should be permanent and wider in scope.

Thousands demonstrated in downtown Seoul on Saturday in support of the truckers' demands.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.