Reuters reported that South Korean steelmaker POSCO will halt some of its plants in the country due to a lack of space to store finished products, which have not been shipped due to a strike by truckers who are demanding higher pay as fuel prices surge. POSCO spokesperson said “Some production at our Pohang steel plants is set for suspension and we are not yet certain how long this suspension will last. The halt will take effect from Monday.”The decision came as the government and the Cargo Truckers Solidarity Union were holding the fourth round of meetings to find a compromise and end the strike, which began on 7 June.South Korean Ministry of Land, Infrastructure & Transport said that about 7,200 members or about 30% of the Cargo Truckers Solidarity union are on strike. A transport ministry official said there had been drops in shipments of some products including steel and cement, but the country was not yet seeing a significant disruption in logistics and the government is meeting with relevant industry officials to prevent such a situation. However, union officials said the number of participating members was much higher and they were joined by non-union truckers.The truckers, regarded as self-employed contractors, are seeking pay increases and a pledge that an emergency measure guaranteeing freight rates, which was introduced amid the COVID-19 pandemic and is due to expire in December, will be extended. Cargo truckers are calling on the government to increase the number of recipients of the Safe Trucking Freight Rates System, which ensures minimum rates of pay and safer working conditions for truck drivers. They also want it to apply to a wider range of trucks, not just container trucks and cement trucks. The strike has presented new South Korean President Mr Yoon Suk-yeol with one of his first big economic challenges.POSCO follows automaker Hyundai Motor in cutting production lines as the strike by thousands of truckers disrupted cargo transport at the country’s industrial hubs and major ports.
Reuters reported that South Korean steelmaker POSCO will halt some of its plants in the country due to a lack of space to store finished products, which have not been shipped due to a strike by truckers who are demanding higher pay as fuel prices surge. POSCO spokesperson said “Some production at our Pohang steel plants is set for suspension and we are not yet certain how long this suspension will last. The halt will take effect from Monday.”The decision came as the government and the Cargo Truckers Solidarity Union were holding the fourth round of meetings to find a compromise and end the strike, which began on 7 June.South Korean Ministry of Land, Infrastructure & Transport said that about 7,200 members or about 30% of the Cargo Truckers Solidarity union are on strike. A transport ministry official said there had been drops in shipments of some products including steel and cement, but the country was not yet seeing a significant disruption in logistics and the government is meeting with relevant industry officials to prevent such a situation. However, union officials said the number of participating members was much higher and they were joined by non-union truckers.The truckers, regarded as self-employed contractors, are seeking pay increases and a pledge that an emergency measure guaranteeing freight rates, which was introduced amid the COVID-19 pandemic and is due to expire in December, will be extended. Cargo truckers are calling on the government to increase the number of recipients of the Safe Trucking Freight Rates System, which ensures minimum rates of pay and safer working conditions for truck drivers. They also want it to apply to a wider range of trucks, not just container trucks and cement trucks. The strike has presented new South Korean President Mr Yoon Suk-yeol with one of his first big economic challenges.POSCO follows automaker Hyundai Motor in cutting production lines as the strike by thousands of truckers disrupted cargo transport at the country’s industrial hubs and major ports.
