Seoul city bus workers and management are at an impasse over the calculation of standard wages and proposed wage increases, raising the likelihood of a full strike scheduled for September 16.
According to Yonhap News, the Seoul City Bus Transportation Association announced on September 10 that it is difficult to accept the labor union's demands for a standard wage calculation based on 176 hours and a 7.85% hourly wage increase.
The standard wage calculation hours are used to convert monthly standard wages into hourly wages. A shorter calculation period results in a higher hourly standard wage, which also increases various allowances based on that calculation.
The union is currently insisting that the calculation period should be set at 176 hours. In contrast, management proposes to restructure the wage system based on 209 hours and settle any differences later according to court rulings.
Management estimates that fully meeting the union's demands would incur an additional annual cost of 539.4 billion won. This includes approximately 117.5 billion won for the 7.85% wage increase and about 277.6 billion won for applying the 176-hour calculation.
Management stated that during the ninth round of wage negotiations last month, it proposed a restructuring of the wage system based on 209 hours and a 10.32% wage increase. Instead of reflecting regular bonuses in standard wages, this would include them in the annual salary, resulting in an approximate 10.3% increase. The union is demanding further wage increases on top of this.
The conflict between the two sides stems from differing interpretations of a court ruling regarding Dong-A Transportation's standard wage case.
The Supreme Court overturned parts of the lower court's ruling that calculated standard wages based on 176 hours, leading the union to claim that the 176-hour standard has been confirmed.
However, management argues that some issues are still being reviewed in the retrial, meaning the calculation hours have not been definitively established. They maintain that the standard should be based on either 209 or 230 hours.
Management has suggested initially applying the 209-hour standard and, if the court later recognizes the 176-hour standard, retroactively paying the difference. Conversely, if the court rules in favor of the 230-hour standard, they would adjust the additional payments accordingly. The union has rejected this proposal.
The two sides held their first mediation meeting at the Seoul Regional Labor Relations Commission on September 9 but failed to reach an agreement. A second mediation meeting is scheduled for September 15.
The union has stated that if no agreement is reached in the second mediation, they will commence a full strike starting with the first bus on September 16. However, the union has also expressed willingness to negotiate further before the second mediation and has requested an additional mediation meeting.
In preparation for the potential strike, the Seoul city government is developing emergency transportation measures and is mediating to help the two sides reach an agreement. Seoul's city buses operate over 7,000 vehicles daily, serving an average of more than 3.79 million passengers, and a strike would likely disrupt commuting for many citizens.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.