The National Ready-Mix Concrete Transport Union and ready-mix concrete manufacturers in the Seoul metropolitan area have reached a new agreement on a transport fee increase. They crafted a compromise by keeping the original increase rate while adjusting the contract period.
According to industry sources Friday, the manufacturers and the union's negotiating team produced a tentative agreement late Thursday night to raise transport fees by 4,200 won (5.5%) per delivery rotation, in talks held under mediation by the Ministry of Land, Infrastructure and Transport (MOLIT).
The key feature of the agreement is that while the transport fee increase remains the same as before, the application period has been shortened. The increased transport fees will apply for eight months, from the first of next month through Feb. 28 next year.
Labor and management had earlier produced a tentative agreement on June 9 centered on the 4,200-won-per-rotation increase, but it was rejected in a member vote held the following day, with 68.3% against and 30.6% in favor.
Negotiations subsequently broke off, and as the transport refusal continued, disruptions spread, centered on construction sites in the metropolitan area. Semiconductor plant construction sites, including Samsung Electronics' Pyeongtaek campus and SK hynix's Yongin cluster, were also affected, and at some sites, scheduled ready-mix concrete pouring work was canceled or postponed.
The manufacturers declared a halt to further negotiations immediately after the first tentative agreement was rejected and demanded the withdrawal of the transport refusal. In particular, they noted that the agreement had been rejected even though they had accepted the integrated bargaining for the 14 metropolitan-area branches that the union had demanded, and stated their position that they could shift to a region-by-region negotiation system going forward.
However, as the land ministry continued behind-the-scenes mediation, labor and management returned to the negotiating table and ultimately reached a renewed agreement by shortening the contract period from the original one year to eight months. By maintaining the transport fee increase while shortening the application period, the union effectively secured an opportunity for early renegotiation.
The National Ready-Mix Concrete Transport Union plans to hold a vote among its members Sunday on the tentative agreement. The outcome will determine whether ready-mix concrete transport in the metropolitan area returns to normal.
The construction industry hopes the agreement will be approved quickly, as the government and major economic organizations are closely watching the situation. If the agreement passes, the metropolitan-area ready-mix concrete transport disruption that has continued for nearly a week is expected to be resolved.
