South Korean truckers' strike cost $1.2 bln in lost shipments (updated)

Kumho Tire

01/12/2022 05:44

(Adds details of shipment loss, negotiation stalemate, industry
impact)
    By Joyce Lee and Heekyong Yang
       SEOUL, Dec 1 (Reuters) - A strike by South Korean
truckers is estimated to have cost 1.6 trillion won ($1.23
billion) in lost shipments, the industry ministry said on
Thursday, as a lengthy strike becomes more likely with the
government and union far from a compromise. 
    Disruptions to the country's supply chain expanded on
Thursday, the eighth day of the nationwide strike by more than
20,000 truckers, as the government prepares to order more of
them back to work. 
    The cement, steel, auto and oil refining industries have
seen 1.6 trillion won in lost shipments in seven days since the
strike began last week, the ministry said in a statement. 
        This includes 562,600 tonnes of steel worth 731.3
billion, 6,707 cars worth 319.2 billion won, and 259,238
kilolitres of oil products valued at 442.6 billion won stuck in
transit, it said. 
  
        No date has been set yet for the next round of
negotiations. Two people at the meeting on Wednesday said
shouting erupted during Wednesday's meeting between the
government and strike organiser Cargo Truckers Solidarity Union
(CTSU). 
  
        The government has said it would not expand a minimum
pay system for truckers beyond a further three years, which the
union says should be permanent and wider in scope. 
  
        Kumho Tire Co Inc  073240.KS , South Korea's No. 2 tire
maker, which makes 65% of its sales from exports, told Reuters
it is cutting 15% to 40% of production output at its two
factories until Dec. 6 because the strike has disrupted
shipments. 
  
        Member companies of Korea International Trade
Association (KITA) said in a statement that fresh produce such
as fish and kimchi had been scrapped because industrial hubs are
blocked, without citing exact figures. 
  
        Exports at Samsung Electronics'  005930.KS  Gwangju
plant, which mainly produces refrigerators and air conditioners,
have been halted, although raw materials and other shipments
were moving normally, Yonhap news agency reported, citing a
plant official. 
  
        Samsung Electronics said it is monitoring the situation.
  
        The government is preparing to potentially order oil
industry truckers back to their jobs, the industry ministry said
on Thursday, after it issued an unprecedented order to force
2,500 cement industry truckers back to work this week. As of
Wednesday, 350 of those drivers had been served those orders.
  
        Refusing to get back on the road after a "start work"
order can be punished by a fine or jail time, and cost drivers
their licenses.
  
 ($1=1,300.7900 won)
 (Reporting by Heekyong Yang, Choonsik Yoo and Joyce Lee;
Editing by Clarence Fernandez and Himani Sarkar)
 ((joyce.lee@tr.com;))