Seoul: The union representing Seoul city bus workers announced plans on Tuesday to initiate a general strike starting with the first buses on Wednesday morning after wage negotiations with management concluded without an agreement.
According to Yonhap News Agency, the labor and management teams engaged in their second round of mediation talks at the regional labor relations commission, spending eight hours in discussions that ultimately failed to yield a resolution. As a result, the union is set to commence the strike at 4 a.m. on Wednesday, as previously threatened. The strike will impact approximately 7,000 city buses operated by 64 companies across roughly 390 routes within Seoul.
In anticipation of the strike, the Seoul city government has announced emergency transportation measures, which include the deployment of up to 1,500 free shuttle buses to facilitate commuter movement to and from subway stations and the enhancement of subway services during peak hours.
Despite the unsuccessful mediation, the union expressed its intention to continue negotiations with management until midnight. The primary contention between the unionized city bus workers and bus companies revolves around the calculation of the hourly wage rate, specifically the inclusion of regular bonuses in ordinary wages.
The union is advocating for ordinary wages to be calculated based on 176 monthly work hours, coupled with a 7.85 percent wage increase. However, this proposal has been rejected by both the bus companies and the Seoul city government, who argue that the suggested calculation would effectively equate to a wage increase of approximately 16 percent.
Yoo Jae-ho, deputy secretary-general of the union, stated that the union remains open to reaching an agreement should the 176-hour monthly work standard be acknowledged, noting that the 7.85 percent wage increase is not a rigid demand. Yoo further disputed management's assertion that meeting the union's demands would elevate bus drivers' annual salaries to 85 million won (US$62,500), clarifying that the average annual salary is estimated to be 59 million won this year.
Seoul's city buses, along with those in other major cities across the nation, operate under a semi-public management framework, wherein bus companies manage services while the municipal government absorbs their financial losses. The Seoul city government estimates that a 1 percent wage increase would result in an additional 14 billion won in annual expenses, with the acceptance of all union demands potentially doubling the city's annual bus system deficit to approximately 1 trillion won.