CEMENT MIXER TRUCKS GO ON STRIKE

[Anchor Lead]

Drivers of cement mixer trucks in the southeastern region have gone on strike after their negotiations with management over an increase of transportation fees collapsed. Some eight thousand construction sites nationwide had to halt cement placing.

[Pkg]

A cement mixing factory in Gyeongsangnam-do Province has ground to a halt. Nearly 20 of its cement mixer trucks are on strike. 1,850 drivers of cement mixers from Gimhae, Yangsan, Changwon and Busan have joined the walkout. As many as 8,000 construction sites nationwide, including 100 large-scale ones, had to suspend cement placing as a result. On Monday alone, shipment of 50,000 cubic meters of cement, enough to be transported in 8,000 trucks, is estimated to have been halted in Gyeongsangnam-do Provinc and Busan. Unionized truck drivers are demanding that the transportation fee be raised from the current 50,000 won to 63,000 won per session.

[Soundbite] Kim Jeom-bin(Construction Equipment Labor Union) : “Of KRW 4.96 mn in transportation fees, we have to pay KRW 2.4 mn monthly to cover operation costs. Only KRW 2.5 mn is left to make a living.”

However, the Busan-Gyeongsangnam-do association for the development of the ready-mixed cement industry says it would be difficult to accept the labor union's demand due to rising prices of cement, oil and other raw materials.

[Soundbite] Cement Mixing Firm Official : “Oil prices are too high these days. The labor union is demanding too much.”

[Soundbite] Cement Mixing Firm Official : “You mean there will be nothing left if transportation fees are also raised? Yes, that too.”

Earlier, steel and cement subcontractors in the southeastern region suspended their operations for four days to demand an increase in construction costs due to inflation and high raw material prices. Construction-related businesses are struggling to stay afloat amid the soaring prices of raw materials.