Image: Reuters Berita 24 English - On Monday, South Korean petrochemical industries joined automobile and steel manufacturers in reducing op...
 |
| Image: Reuters |
Berita 24 English - On Monday, South Korean petrochemical industries joined automobile and steel manufacturers in reducing operations owing to rising stocks, as transport bottlenecks caused by a truckers' strike rapidly extended across Asia's manufacturing powerhouse.
The industry group representing 32 petrochemical businesses in South Korea reported that its member companies' average daily ex-factory exports have decreased by 90 percent due to the ongoing strike, which is currently in its seventh day.
The Korea Petrochemical Industry Association said in a statement, "The Cargo Truckers Solidarity union's collective action to reject transportation is spreading damage to key petrochemical complexes in Ulsan, Yeosu, and Daesan."
The 22,000-member organization is protesting rising fuel prices and is requesting minimum wage guarantees. In four rounds of negotiations with the government, no solution has been reached.
It was unconfirmed whether companies have already ceased operations, but a source from a large petrochemical company told Reuters that the majority of enterprises were still stockpiling finished goods in the hopes of resuming shipping.
In addition to forming a task force team within their trade association to monitor the situation and advocate for a speedy resolution, automakers who were severely impacted by the inability to receive a timely supply of components and transport finished goods formed a task force team to monitor the situation and advocate for a speedy resolution.
POSCO has announced that it will cease several of its factories due to a lack of storage space for unshipped goods. Hyundai Motor has reduced production at some assembly lines, as have cement manufacturers.
President Yoon Suk-yeol, a political rookie who assumed office five weeks ago, could be put to the test by protracted labour unrest, which could detract from his conservative agenda and increase the likelihood of long-term enmity with powerful unions.
The administration has urged the truckers to return to work, but has also stated that it will attempt to incorporate their requests into the legislative process and continue its efforts to resolve the conflict through negotiation.
The truckers are requesting a continuation of the subsidies, which are slated to expire this year and ensure minimum salaries despite rising fuel costs. The government asserts that changing the law is the responsibility of the legislature.
As the global economy battles with supply bottlenecks, any extended delay in the manufacturing and shipments of chips, petrochemicals, and automobiles might contribute to rising inflation and sluggish growth fears.
Inflation in South Korea is expected to reach a 24-year high of 4.8% this year, according to the Organization for Economic Co-operation and Development, which also reduced its growth forecast from 3.0% in December to 2.7% this week.
