POSCO to halt some plants as South Korea trucker strike continues

A member of the Cargo Truckers Solidarity union stands subsequent to a truck throughout a strike in Yeosu, South Korea, June 9, 2022. Yonhap through REUTERS/File Photograph

SEOUL, June 12 (Reuters) – South Korean steelmaker POSCO mentioned on Sunday will halt a few of its vegetation within the nation because of an absence of area to retailer completed merchandise, which haven’t been shipped because of a strike by truckers who’re demanding greater pay as gasoline costs surge.

POSCO (005490.KS) follows automaker Hyundai Motor (005380.KS) in reducing manufacturing strains because the strike by 1000’s of truckers disrupted cargo transport on the nation’s industrial hubs and main ports.

“Some manufacturing at our Pohang metal vegetation is about for suspension, and we’re not but sure how lengthy this suspension will final,” a POSCO spokesperson mentioned, including that the halt will take impact from Monday.

The choice got here as the federal government and the Cargo Truckers Solidarity union have been holding a fourth spherical of conferences to discover a compromise and finish the strike, which started on June 7.

South Korea is a serious provider of semiconductors, smartphones, autos, batteries and electronics items. The strike has deepened uncertainty over international provide chains already disrupted by China’s strict COVID-19 curbs and Russia’s invasion of Ukraine. learn extra

As ports worldwide wrestle with provide bottlenecks, a slowdown in chip manufacturing, petrochemicals and autos threatens South Korea’s mainstay exports, and shopper inflation in Asia’s fourth-biggest economic system is at a 14-year excessive. learn extra

The truckers are demanding an extension to subsidies, set to run out this yr, that assure minimal wages as gasoline costs rise.

The Ministry of Land, Infrastructure and Transport mentioned it responded to the union by explaining “that ship house owners, the celebration of curiosity, demand the present Protected Trucking Freight Charges System be abolished”.

A joint assertion from a complete of 31 trade associations on Sunday urged truckers to finish their strike and return to work, as bottlenecks are increase throughout industries together with cement, petrochemical, metal, auto and IT parts.

“This lengthening strike by the Cargo Solidarity is nothing greater than placing up a combat in an excessive method by holding nationwide logistics as a hostage, at the same time as the federal government has mentioned it can discover a method for inclusive progress via talks,” associations representing employers, taxis, semiconductors, cars and others mentioned within the assertion.

Round 40 folks have been arrested within the strike, some later launched. The actions have been largely peaceable, although tense at some places.

The ministry estimated some 6,600 truckers, or 30% of the Cargo Truckers Solidarity union members, have been on strike on Saturday, halting trucking actions at petrochemical complexes in Ulsan and slowing product deliveries for POSCO.

The union says the variety of these placing was greater, with out specifying a quantity, and that non-union truckers have been additionally selecting to not work.

Container site visitors at Busan port, which accounts for 80% of the nation’s complete, had plunged by two-thirds from regular ranges on Friday, a authorities official mentioned.

At Incheon port it has fallen 80%, whereas on the port for Ulsan, the economic hub the place a lot of the strike motion has occurred, container site visitors has been halted since Tuesday.

Extra reporting by Byungwook Kim; Writing by Choonsik Yoo; Modifying by William Mallard, Jacqueline Wong and Louise Heavens

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