Production suspension feared in cement industry over truckers’ strike

SEOUL– Cement companies said Monday they will be forced to suspend production in a week if truckers continue to stage a strike, calling for the government’s swift resolution.

They made the appeal when Industry Minister Lee Chang-yang visited a factory of Asia Cement Co. in the central city of Jecheon to check the impacts of the nationwide strike and discuss measures with related firms, according to the Ministry of Trade, Industry and Energy.

Thousands of truckers launched a strike Thursday, demanding the government extend temporary rules guaranteeing minimum freight rates. The rules are set to expire at the end of this year.

The collective action has cost 46.4 billion won (US$34.6 million) in unmet deliveries in the industry over the past four days, according to government assessment.

If the current situation continues, the cement companies could suspend production in about a week, as their silos for storage are full, industry officials told the minister.

“The government will seek measures to resume operations of transportation vehicles and to minimize the impacts, such as the mobilization of military vehicles,” Lee said.

Earlier in the day, the government warned of issuing an executive order to force striking truckers to return to work in case the walkout poses a serious threat to the economy, saying the average container movement at major ports has fallen to 28.1 percent of the normal level.

On Monday, the government and the Korean Public Service and Transportation Workers’ Union Cargo Truckers Solidarity Division held their first negotiations, but failed to narrow differences over the minimum freight rates.

They agreed to meet for the second round of negotiations on Wednesday at the transport ministry building in Sejong City, an administrative hub 130 km southeast of Seoul, according to union spokesman Lee Eung-ju.

Source: Yonhap News Agency

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