Recurrence of car consignment crisis after 5 months of cargo union strike

-Consignment directly by Hyundai/Kia employees, extension of warranty period

As the cargo union strike continued, consignment chaos recurred in the automobile industry. It’s been 5 months since the strike last June.

According to the domestic car industry on the 29th, due to the cargo union strike, Hyundai Motor Company and Kia expanded the direct consignment service from some factories to factories nationwide. Hundreds of employees grabbed the steering wheel of a new car and set out to move when it was impossible to transport products made in the factory with carriers to the warehouse. In this case, the increase in mileage of new vehicles is unavoidable, so the general and dynamometer warranty periods are extended by 2,000km each with consent from consumers.

The Korea Cargo Workers’ Union went on strike on the 24th, demanding a three-year extension of the sunset of the safe freight rate system applied by the government to the container and cement sectors. The government has asked the government to make the system permanent and to expand items (steel, automobiles, dangerous goods, feed, parcel delivery, etc.), but the government is refusing to do so.

The oil refining industry, where members of the Cargo Alliance account for about 70 percent of transport trucks, is also struggling. Daily shipments were slightly lower than usual. Some gas stations are already starting to run out of stock. The oil refining industry believes that oil supply shortages will be unavoidable if the strike is prolonged. The tire industry is also known to have reduced the amount of product arrival and departure by half per day.

Meanwhile, on the 28th, the government raised the crisis warning level to the highest level, serious. Accordingly, the response system will be strengthened by the Central Disaster and Safety Countermeasure Headquarters, and related agencies such as the Ministry of Land, Infrastructure and Transport, the Ministry of Public Administration and Security, the National Police Agency, and the Ministry of National Defense will implement government-wide comprehensive emergency measures. The government plans to issue a business start order if logistics damage intensifies in accordance with the zero-tolerance hardline response principle.

Reporter Koo Ki-seong [email protected]

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