Tuesday, August 16, 2022
HomeBusinessStriking truck drivers in South Korea snarl supply chains.

Striking truck drivers in South Korea snarl supply chains.

A truck-driver strike in South Korea has stretched into a seventh day, forcing the country’s manufacturers to scale back production and slowing traffic at its ports.

On Monday, the country’s Ministry of Trade, Industry and Energy said the strike had resulted in production and shipment disruptions for automobiles, steel and petrochemicals worth 1.6 trillion won, or about $1.25 billion, over the first six days.

The truckers’ strike is the latest headache for a global supply chain already reeling from Covid lockdowns in China and Russia’s invasion of Ukraine, especially because Korean companies are major suppliers for critical components and materials like semiconductors and steel.

Hyundai Motors said it was forced to cut production at one of its domestic plants because of the strike. Posco, Korea’s biggest steel maker, said it halted operations at some facilities because it had run out of space to store products. Hankook Tire said it had to cut daily shipments.

The Cargo Truckers’ Solidarity Union has said it asked repeatedly for safer conditions and reasonable fares but it had “no choice” but to strike when its demands were not met.

Korea’s transport ministry, which is continuing to negotiate with the union, urged the truckers to return to work in a statement. The government said it would enact emergency measures including consigning 100 cargo trucks from the military and 21 vehicles from other local government agencies to carry goods into major ports.

On Sunday, the Korea Enterprises Federation released a joint statement with 30 other business industry groups, including semiconductor manufacturers, carmakers and others demanding that the truckers call off the strike because it was “causing enormous damage to manufacturing and trade, the backbone of our economy.”

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