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(LEAD) Truckers' strike disrupts supply of goods worth 3.5 tln won: gov't

All News 20:07 December 06, 2022

(ATTN: ADDS more details on damage, land minister's remarks in last 6 paras)

SEOUL, Dec. 6 (Yonhap) -- The nationwide strike by truckers has caused supply disruptions of goods worth an estimated 3.5 trillion won (US$2.69 billion) in five key sectors, the industry ministry said Tuesday.

The estimate came as the truckers' strike entered its 13th day without any signs of a compromise. Truckers have been demanding that the government extend temporary rules guaranteeing minimum freight rates, set to expire this year.

The strike has caused disruptions in major industries, including steel, petrochemicals, oil refining, cement, and automobiles, with South Korea mulling an additional executive order for truckers in the fuel and steel industries to return to work.

The government invoked a return-to-work order on truckers in the cement industry last week.

"We are reviewing an option to issue a return-to-work order in oil refining, steel, and petrochemical sectors as early as this week in a preemptive effort before massive damages become a reality," Industry Minister Lee Chang-yang said.

The ministry warned local steel and petrochemical plants may soon have to cut production due to shortages of storage space.

As of 8 a.m., 85 gas stations were completely out of fuel, with Seoul and its surrounding Gyeonggi Province taking up 27 and 21, respectively.

According to the Korean Iron and Steel Association, the logistics disruption suffered by five major steelmakers, including POSCO, had come to around 920,000 tons worth 1.2 trillion won as of Monday. The value nearly doubled in a week.

A notice reading "(We) Strongly Condemn Truckers' Strike That Neglects People's Livelihood." is posted at a gas station in Seoul on Dec. 5, 2022, amid a nationwide strike by unionized truckers that has disrupted supply chains in key industries. (Yonhap)

A notice reading "(We) Strongly Condemn Truckers' Strike That Neglects People's Livelihood." is posted at a gas station in Seoul on Dec. 5, 2022, amid a nationwide strike by unionized truckers that has disrupted supply chains in key industries. (Yonhap)

Thousands of unionized workers staged protest rallies across the country Tuesday in solidarity with the striking truckers, but a growing number of truck drivers have returned to work, which would weaken the momentum for the collective action.

Shipments for the cement industry had recovered to around 88 percent of the average after more truckers had resumed work, and the government mobilized military and other official-use vehicles, according to the industry ministry.

Land Minister Won Hee-ryong said after a closed-door meeting with the Korean Confederation of Trade Unions that the only solution will be "striking truckers' unconditional return to work and then discussing their demands within a legal boundary."

The government is "reaching the limit," and the two sides need to find a solution through discussions at the National Assembly, Won told reporters, indicating the government would not have additional negotiations with the union under the current circumstances.

So far, the government and the labor union held two rounds of official talks, but they fell through.

colin@yna.co.kr

graceoh@yna.co.kr
(END)

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