Seoul Bus Labor and Management Clash Over Costs Exceeding 500 Billion Won; Second Mediation on the 15th Seen as Decisive

[Financial News] Seoul’s city bus labor and management are facing the possibility of a full-scale strike after clashing head-on over the criteria for calculating ordinary wages and wage increases. The Seoul City Bus Transportation Business Association says accepting all of the union’s demands would create an additional burden of more than 500 billion won this year alone, making them difficult to accept. The union plans to begin a strike with the first buses on the 16th if no agreement is reached at the second mediation meeting on the 15th.
The Seoul City Bus Transportation Business Association said in a statement on the 10th that accepting all of the union’s demands would create an estimated additional burden of 539.47 billion won this year. Management explained that a 7.85% hourly wage increase would result in an annual burden of 117.58 billion won, while including bonuses and holiday allowances in ordinary wages based on 176 monthly hours would cost an additional 277.61 billion won. The association also said the total would include 45.13 billion won for applying two additional hours of night work per day, 30.3 billion won for adjusting the wages of maintenance and administrative staff, 34.15 billion won for employment guarantees and restrictions on restructuring, and 10.14 billion won for installing foot black boxes in all vehicles.
The biggest issue currently dividing labor and management is the monthly hours to be used in calculating ordinary wages. The union argues that ordinary wages should be calculated based on 176 hours per month. It says the same standard should apply to Seoul city buses because the Supreme Court upheld in April the lower court’s ruling in the Dong-a Transportation lawsuit that bonuses constitute ordinary wages and that the monthly prescribed working hours are 176.
Yoo Jae-ho, an official of the Seoul City Bus Workers' Union, emphasized at a media briefing the previous day, "Ordinary wages are unpaid wages. This is a matter of whether they will be implemented, not a new subject for negotiation." The union maintains that wage increases resulting from the ordinary-wage calculation should be reflected separately from wage negotiations.
Management, however, maintains that 176 hours is not a finalized standard. Because the Dong-a Transportation ordinary-wage lawsuit was remanded by the Supreme Court and is currently being heard by the Seoul High Court, management argues that either 209 or 230 monthly hours should be used as the basis. The Seoul City Bus Transportation Business Association said, "Since 176 hours is not a finally confirmed standard, it is reasonable to retroactively settle the difference based on the court’s ruling."
The wage increase rate is another point of contention. The Seoul City Bus Workers' Union is demanding an increase of at least 5%, taking into account wage increase rates in other areas operating under semi-public bus systems. Management, meanwhile, proposed restructuring the wage system based on 209 monthly hours, which it says would produce an effective wage increase of 10.32%. It also proposed retroactively paying the difference if the court ultimately confirms 176 hours, and settling the amount accordingly if the court rules that 230 hours should apply.
Despite these proposals, labor and management remain deadlocked. They held nine rounds of negotiations before talks ultimately broke down, and the two sides also failed to narrow their differences at the first mediation meeting held on the 9th at the Seoul Regional Labor Relations Commission. The union will hold a strike vote on the 11th and plans to launch a full-scale strike with the first buses on the 16th if no agreement is reached by the second mediation meeting on the 15th.
More than 7,000 Seoul city buses operate each day, serving an average of over 3.5 million passengers daily. If a strike becomes a reality, significant disruption to public transportation is expected, particularly during commuting hours.
The Seoul Metropolitan Government has begun preparing emergency transportation measures in anticipation of a possible strike. A Seoul Metropolitan Government official said, "The city and its autonomous districts are arranging chartered buses that can replace city buses," adding, "The subway will also operate additional services."
[email protected] Seong Cho-rong Reporter