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(LEAD) S. Korea's truckers union calls off week-long strike
SEOUL, June 19 (Yonhap) -- South Korea's truckers union has called off its week-long strike that effectively paralyzed overland freight traffic and trade, industry and government sources said Thursday.
Sources said the Korea Cargo Worker Union (KCWU) and the association of local container companies held their fifth round of talks in the port city of Busan and agreed on a 19 percent increase in freight hauling fees.
The umbrella union representing about 13,000 workers called a nationwide strike on Friday, calling on the government and large logistics companies to take realistic steps to ease the burden of truckers faced with skyrocketing diesel fuel prices. The walkout was devastating because non-union truckers joined the strike.
The two sides also reached an understanding on introducing standardized fares for freight haulage, starting in 2009, and working together to make this into law.
The standardized fare system has been a key demand of the KCWU since it can ensure a minimum wage for drivers and small-time owners of trucks.
The compromise follows talks held Wednesday that ended after container companies proposed hikes of 16.5 percent, compared to the 21.5 percent demanded by the umbrella union.
The KCWU, however, said that while it was calling off the strike at a national level, separate negotiations will take place between truck drivers and companies that require transportation services.
In a statement released after the agreement was reached, the two sides expressed hope for the speedy normalization of overland freight transportation.
Factories had to stop or cut back on production because raw materials and components were not arriving on time, while US$3.61 billion worth of exports and $3.64 billion in imports have been held up at ports.
The Ministry of Land, Transport and Maritime Affairs, meanwhile said it welcomed the agreement, and pledged to take steps to help start introducing standardized fare system for hauling cargo next year.
It said a committee will be set up under the prime minister's office to examine ways to help improve the country's logistics network. This is expected to include streamlining the multi-layer contract arrangement that has reduced the money reaching drivers to half of what has been paid by the company requesting the freight transport.
The ministry in addition said plans to allocate up to 270 billion won (US$262 million) to buy excess trucks, help convert diesel engines to liquefied natural gas (LNG), and allow more commercial vehicles to use the nation's highways cheaply will be implemented on scheduled. The measures are all aimed at cutting truckers' operating costs.
yonngong@yna.co.kr
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