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Striking SKorea truckers reach agreement with major clients
Posted: 19 June 2008 1401 hrs

 
 
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SEOUL: South Korean container truck drivers reached agreement with several major clients Thursday, raising hopes of ending a strike over fuel prices which has crippled major ports.

Truckers and an association of container transport companies reached an agreement early Thursday to raise drivers' fees by 16.5 percent, the Ministry of Land, Transportation and Maritime Affairs said.

It said separate agreements were reached overnight between truckers and major clients including LG Chem, POSCO and Glovis, the logistics arm of South Korea's top carmaker Hyundai Motor.

"The government hopes that a breakthrough will be made soon in negotiations with truck drivers following the agreements," ministry official Kim Yong-Tae told AFP.

Truckers have also been holding tough talks with government officials to request subsidies and other measures to help them cope with high fuel costs.

The labour unrest is intensifying pressure on the government of President Lee Myung-Bak, which is already grappling with a month-long series of street protests against its decision to resume US beef imports.

Some 13,500 members from the Korea Cargo Workers Union walked off the job last Friday. Picketing means the strike has also disrupted operations by about 20,000 other non-union truckers.

As of early Thursday 11,933 truckers were still on strike, Kim said.

The ministry said about 40 percent of normal truck movements were taking place at ports, twice as much as earlier in the stoppage.

The strike, in its seventh day, has hit major ports and inland cargo terminals where containers are stacking up. Local firms face problems receiving raw materials and exporting finished goods.

About 23,000 construction drivers -- largely those who drive dump trucks, bulldozers and concrete mixer lorries -- also stopped work Monday in protest at high fuel prices.

But 5,000 of them agreed to end their walkout on Wednesday after the government promised to press construction firms to pay more for fuel and to standardise contract terms. – AFP/ac

 

 



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