DELIVERIES SUSPENDED DUE TO STRIKE

[Anchor Lead]

A continuing strike by unionized truckers is dealing a substantial blow to the cement, concrete and tire industries. However, there are no indications that behind-the-scenes negotiations are under way or the government is working to mediate in the dispute.

[Pkg]

A cluster of storage facilities owned by cement companies. The loading dock is supposed to be busy with trucks transporting sacks of cement. But that's not the case. This is because loading and deliveries have been suspended due to unionized truckers’ strike.

[Soundbite] Han Chan-soo(Korea Cement Association) : "The deliveries of cement from factories in Danyang, Jecheon, Yeongwol and Okgye have been halted nearly entirely."

This has put ready-mix concrete companies on alert. It is known that inventories are running out for most of about 140 firms in the capital area. This crisis inevitably causes repercussions on the construction industry.

[Soundbite] Kim Young-seok(Seoul-Gyeongin Ready-mix Concrete Cooperative) : "Fewer than a third of the companies can continue to run. But that will likely be finished in the morning."

At a Daejeon factory of Hankook Tire and Technology, containers carrying to-be-exported tires were not taken out. The strike has also disrupted production at a Hyundai Motor plant in Ulsan. An official with the Uiwang container base, a logistics hub in the capital region, said that all land cargo transportation, except for railway services, have been virtually brought to a stop. The union of truckers held a press conference and repeatedly demanded the maintenance of the so-called “safe trucking freight rate system,” which links rises in oil prices with freight rates.

[Soundbite] Park Yeon-soo(Truckers’ Union) : "We believe if the safe trucking freight rate system is abolished, cargo owners will reintroduce a bidding system, which will eventually curtail freight charges for truckers."

However, the business sector opposes their demand, saying the system must be abolished late this year as scheduled, since it increases logistics costs and eventually weakens the competitiveness of the nation’s exports. The government claims the door for dialogue remains open. But it has failed to present detailed measures to settle the dispute, pointing out that it is the National Assembly’s job to determine if the safe trucking freight rate system should be kept or removed.