From Korean Public Service and Transport Workers' Union (KPTU) restarted their protested against the abolition of minimum freight rates, scheduled on December 31st, 2022. Minimum freight rate was introduced to Korean transport industry on January 1st, 2020, under the name of “safe trucking cost,” regarding the harsh working environment and poor wage in the industry caused by overheated competition among the truckers. According to the system, the Committee on Safe Freight Rates for Trucks, which consists of representatives of truck owners, workers, business owners and shippers, could determine the standardized minimum freight weight for all truckers in the country. A year after the policy was implemented, there was a significant increase in the wage of the truckers, although the working hours were decreased.
As beneficial as the policy was for the truckers, the policy brought up a major repulsion of the shippers and transport business owners, even before it was implemented. Therefore, with the objection in regard, the Safe Freight Rates system was enacted as a sunset law, a policy that has a fixed period of duration. The two-year period was set, hence the last day of 2022 being the last day of minimum freight rates for the truckers.
To keep the policy from abolition, KPTU held a series of nationwide protest, including the truckers’ strike. Transport across the country is slowed down, but not at a complete stop, during the strike. The third and ongoing strike is likely to be prolonged, as KPTU and Ministry of Land, Infrastructure and Transport failed to meet an agreement on the negotiation on November 30th. Sensible agreement is anticipated by not only the workers and shippers in the industry, but also all people of Korea to put an end to further inconvenience in shipping and transport service.