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2008 June 18   13:55

South Korean strike halts trade to the tune of US$5 billion

Export-dependent South Korea said yesterday that a strike by container truck drivers in protest at soaring fuel prices has disrupted international trade worth almost US$5 billion.
The stoppage by more than 13,000 drivers, in its fifth day yesterday, has crippled major ports and inland cargo terminals where containers are stacking up.
The Ministry of Knowledge Economy said the strike had affected exports worth US$2.31 billion and imports worth US$2.43 billion as of late Monday.
More than 23,000 construction drivers - largely those who drive dump trucks, bulldozers and concrete mixer lorries - have also downed tools since Monday - also in protest at rising fuel prices.
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.
The Ministry of Land, Transportation and Maritime Affairs said the construction walkout hit some 510 state building sites nationwide, with 53 of them forced to halt work.
The construction and container truckers want steps to cut fuel costs or to be able to raise their fees in the face of the soaring price of diesel. Some 20 per cent of normal truck movements in and out of ports and cargo terminals was continuing, with the help of military drivers.
Five cabinet ministers at a press conference announced a 100 billion won (S$132 million) package to modernise the transport sector and improve truckers' welfare. Part of it will be spent on increasing the number of trucks fuelled by natural gas and some on toll fee discounts.
Drivers also complain about the way big companies sub-contract services, which involves them losing 30-40 per cent of their fees to middlemen. The government said it would try to draw up a better system.
But the ministers urged truckers to return to work. They also called on the Korean Confederation of Trade Unions to abandon its separate general strike plan announced for next month in protest at government policy.

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