Rate hike of 4,200 won per trip agreed, with renegotiation in 8 months

Industry and transport union reach second tentative deal

Vote outcome to determine whether deliveries resume

Ready-mix concrete trucks sit idle at a plant in Anyang, Gyeonggi Province, on June 8, as the Ready-Mix Concrete Transport Workers' Union began a work stoppage to press management for a new wage and collective bargaining agreement. [Yonhap]
Ready-mix concrete trucks sit idle at a plant in Anyang, Gyeonggi Province, on June 8, as the Ready-Mix Concrete Transport Workers' Union began a work stoppage to press management for a new wage and collective bargaining agreement. [Yonhap]

Negotiations over ready-mix concrete transport fees in the Greater Seoul area appear to be moving toward a resolution. The ready-mix concrete industry and the National Ready-Mix Concrete Transport Workers' Union reached a second tentative agreement faster than expected, easing immediate concerns about a prolonged strike. Whether deliveries fully resume, however, hinges on the outcome of a union membership vote held Monday.

Union members began voting on the second tentative deal at 9 a.m. Monday, according to the industry. Late Sunday night, under mediation by the Ministry of Land, Infrastructure and Transport, the two sides agreed to raise the per-trip transport fee by 4,200 won over an eight-month period. Compared with the first tentative agreement, the rate increase — 5.5 percent, or 4,200 won per trip — is unchanged, but the contract term differs.

While the first tentative agreement was based on a one-year term, the second shortens it to eight months, running from July 1 through Feb. 28 next year. The deal is essentially a compromise: it preserves the same pay increase while cutting the contract length to soften internal opposition among union members.

Industry officials believe union leadership put forward the eight-month deal to defuse heightened discontent among members following the rejection of the first agreement. Although the industry had initially resisted further talks after that rejection, growing disruptions at construction sites across the Greater Seoul area and continued government mediation brought both sides back to the table sooner than anticipated.

"The key difference from the first agreement is that this one leaves open the possibility of another increase in eight months — that's what gives union leadership something to offer members," an industry official said. "The mood suggests approval is likely, but internally, no one is willing to predict the outcome."

The two sides reached the first tentative agreement on June 9, agreeing to raise the per-trip fee by 4,200 won. A membership vote held June 10 rejected the deal: of 7,517 eligible members, 7,222 cast ballots, with 2,213 in favor and 4,931 opposed — a rejection rate of 68.3 percent.

Following that rejection, the refusal to transport ready-mix concrete across the Greater Seoul area continued, spreading delays to construction sites. The industry estimates that concrete pouring has been disrupted at 117 sites in the region. Because ready-mix concrete must be delivered and poured within a short window after production, any breakdown in the transport network immediately stalls construction schedules.

The urgency of mounting site damage also drove the government, industry and union leadership to reach the second agreement quickly. The Greater Seoul area accounts for more than half of all ready-mix concrete demand in South Korea. A prolonged transport stoppage would affect not only housing and commercial developments but also large industrial facilities, including semiconductor factories.

The prospect of renegotiation in eight months, however, remains a complicating factor. Even if the current deal passes, the debate over transport fee increases could resurface when the agreement expires at the end of February next year. For manufacturers, the deal reduces the immediate strike risk, but recurring pressure for fee hikes poses a longer-term burden.

"The second tentative agreement came together quickly because the government, the industry and union leadership all moved to prevent further damage on the ground," an industry official said. "But the final test is the membership vote. If it passes, we move toward normalizing deliveries — if it fails again, the disruption at construction sites will only get worse."

Another industry official said the eight-month deal was designed to leave room for members to renegotiate. "It may be enough to stop the strike for now, but the possibility of transport fee talks reigniting early next year has not gone away," the official said.


hong@heraldcorp.com