50,000 cubic meters of concrete pours delayed

Industry warns of mounting losses if stoppage drags on

Calls grow to reform mixer truck supply control regime

Members of the National Ready-Mix Concrete Transport Union hold a rally near Yeouido in Seoul on June 8, calling for collective bargaining and a wage agreement. [Herald DB]
Members of the National Ready-Mix Concrete Transport Union hold a rally near Yeouido in Seoul on June 8, calling for collective bargaining and a wage agreement. [Herald DB]

A work stoppage by the ready-mix concrete transport union that began June 8 has disrupted concrete pours at 70 construction sites across the Greater Seoul area, according to industry figures.

Data filed with the Korea Federation of Construction Contractors' "Ready-Mix Concrete Work Stoppage Business Support Center" show that as of 3 p.m. Tuesday, the halt in ready-mix concrete supply had delayed roughly 50,000 cubic meters of concrete pours across 70 sites operated by 12 large construction companies — the equivalent of 8,348 mixer truck loads.

The actual scale of disruption is likely far larger. With more than 19,000 construction sites currently active in the Greater Seoul area, damage at other major firms and smaller construction companies that have yet to file reports has not been captured in the tally.

"Even when concrete pours stop, the costs of keeping workers and equipment on site keep piling up," a construction industry official said. "With the added risk of penalty charges for schedule delays, the industry's losses will only grow if the stoppage drags on."

The official added that the construction industry was already pushed to its limits by rising material costs and a deteriorating business environment, and that the latest crisis had only deepened the sense of alarm across the sector.

Industry voices are also calling for reforms to the supply control regime governing concrete mixer trucks, arguing that changes are needed to ensure a stable ready-mix concrete supply.

The construction industry says the current supply control system, which has restricted new mixer truck registrations since 2009, has entrenched a near-monopoly market structure. The result, it argues, is a recurring cycle of freight rate hikes and collective transport refusals that repeatedly disrupts supply.

In response, one industry official said the system should be reformed so that market conditions are reflected more quickly — specifically by shortening the supply control review period from the current two years to one year and by differentiating supply expansion targets by region to increase the number of mixer trucks available.

Meanwhile, the Korea Federation of Construction Contractors on June 8 formally requested government mediation in connection with the National Ready-Mix Concrete Transport Union's strike. The federation plans to maintain a direct hotline with the Ministry of Land, Infrastructure and Transport until the supply disruption is resolved, monitoring damage at construction sites and continuing talks to ensure its recommendations are acted on promptly.


lucky@heraldcorp.com