Feature: Strikes paralyze ports in S.Korea

SEOUL, May 12 (UPI) -- The South Korean government has been criticized for its sluggish response to strikes by unionized truck drivers that brought the country's freight transport to an unprecedented standstill.

The government has repeatedly warned of "stern measures" against striking workers, but has been accused of lacking substantial measures to end the crippling walkouts that began earlier this month.

Some analysts say a pro-labor stance by new President Roh Moo-hyun has caused workers to raise their voice and brace for collective action in dealing with the government and management, resulting in more labor disputes, which could hurt South Korea's export-dependant economy.

Criticism was sharp this week as the country's freight shipments were virtually paralyzed after unionized cargo workers and truckers prolonged their walkouts at the country's two main ports, which handle 90 percent of the nation's container freight.

The government accepted some demands of striking truckers, such as higher cargo payment fees, on Monday morning after marathon overnight negotiations. The unions, however, are still calling for more concessions from the government and transportation companies, blocking the movement of cargo in and out of the ports.

Most vessels remained off the ports as truck drivers refused to deliver container freight for a fourth consecutive day Monday. Idled port sites were already packed by tens of thousands of containers, keeping incoming ships from unloading freights.

Government officials said the volume of shipments handled at the country's biggest Busan port has dropped top below 30 percent of normal since Sunday. But actual handling remained at around 15 percent as striking workers were blocking cargo shipments by non-union vehicles, media reports said.

The paralysis of the Busan port, which is responsible for some 80 percent the nation's container freight, hit local exporters and importers, industry officials said.

Cargo handling at the southwestern port of Gwangyang has also been disrupted since Friday when truckers went on strike. Shipment handling at the port has decreased to 5.1 percent, port officials said.

Shipping officials expressed concerns that one or two more days of truckers' work stoppage will bring overall shipments to a halt, dealing irreversible damage to deliveries of export and import goods.

Lee Jae-kyun, the head of the Maritime Affairs and Fisheries Office in Busan, warned that the cargo strikes could downgrade the status of ports, which forces foreign vessels to be reluctant to use them.

Local companies said they had suffered heavy losses from the cargo strikes. Samsung Electronics Co., a consumer-electronics giant and the world's largest memory-chip maker, estimated 70 percent of its export-related work was being affected as of Monday. It also has trouble in bringing in raw materials.

"Unless ongoing strikes end within two or three days, we may have to suspend operations in many factories," said Nam Ki-hyun, an official at Samsung's product delivery team.

Half of export containers from Daewoo Electronics, which exports 90 percent of its total products through the two ports, remain piled up at port grounds, the company said.

The Commerce Ministry estimated the losses caused by the walkouts at $220 million as of Monday afternoon. But it said losses are expected to sharply rise to some $200 million every day if the Busan and Gwangyang ports are locked out.

But unionized truckers and longshoremen have vowed to continue their strikes until all of their demands are met, such as cuts in fuel taxes and highway tolls and a government guarantee of their full labor rights.

About 2,000 trackers affiliated with the Korea Cargo Transportation Workers' Union in Busan and Gwangyang vowed not to drop their collective action before their demands are met. The union, which claims 25,000 members, threatened to go on a general strike nationwide beginning Tuesday.

Truckers had originally planned to end their strike Sunday to wait for the outcome of negotiations with transportation companies and the government.

But they abruptly reversed their decision, largely encouraged by unionized truck drivers in Pohang, a major industrial port city, who won a pledge to increase cargo payment fees by up to 15 percent and extend other favors.

The government and transport companies were forced to make the concessions as the weeklong strike had caused serious delivery problems for major steel-makers, including Pohang-based Posco Co., the world's third-largest steel maker. Posco had estimated daily losses of $9.1 million during the stoppage.

In South Korea, heavy industry companies have contracts with transportation firms to deliver their products. Brokered by cargo agents, the transportation firms then subcontract with truck drivers.

Truck drivers, who handle some 70 percent of the nation's cargo transport, have long complained about the subcontract system, accusing it of squeezing their wages. Their anger erupted late last month when a unionized trucker committed suicide, blaming the subcontract system.

The transport dispute come as the country's labor unions are set to enter the collective bargaining season. Analysts have forecast major industries would face tough labor confrontations this year, as Roh's government has bowed to labor pressure since taking office in February.

Roh, a former human right lawyer, was elected last December with pledges of tough reforms of big businesses, enjoying strong support from unionized workers and underprivileged voters.

Big businesses said they could not embrace "unacceptable" labor demands, citing gloomy economic date in the wake of North Korea's nuclear threats and the negative impact of the SARS virus.

In the face of growing criticism, Roh hurriedly ordered on Monday to set up a presidential emergency task force to cope with truckers' strikes. Officials also said the government was considering setting up a "crisis management agency" that can effectively produce social consensus mainly to deal with massive labor disputes.

Many analysts urge the government to take a balanced approach toward labor unions and management to ease labor disputes. "What is more important is the establishment of strict law enforcement practices to improve antagonistic labor-management relations," said Kim Yong-se, a professor at Daejon University.