Seoul Metro workers on strike over planned job cuts, UK rail union sees progress in pay raise
Business
South Korea's operators grappling with debt, partly from free rides for senior citizens
SEOUL/LONDON (Reuters) – More than 10,000 unionised South Korean metro workers launched a two-day strike on Thursday in protest against the subway operator's push for job cuts to stem snowballing debt, causing disruptions for some commuters in the greater Seoul area.
The strike came hours after negotiations between Seoul Metro and its two major unions fell apart due to differences over the operator's plan to scale back its workforce by some 13 per cent, or more than 2,200, by 2026.
Seoul's metro operators have grappled for years with debt, partly from free rides for senior citizens, as Asia's fourth-largest economy faces a rapidly aging population and surging welfare costs.
There was no major impact during the morning rush hour as the strike began at 9 am and a smaller union dropped out at the last minute. But city authorities warned of some delays in the evening, and pledged to mobilise emergency trains, buses and substitute workers.
Employment and Labour Minister Lee Jung-sik expressed regret over the strike and said he would strive for a compromise while responding to any illegal acts.
Lee called for efforts to curb the metro operator's debt, which topped 1.7 trillion won ($1.3 billion) last year.
Last month, the city raised metro fares for the first time since 2015, by around 12%, as part of efforts to reduce the debt, although free rides for the elderly remain in place.
"At a time when Seoul citizens are shouldering the burden with fare hikes, it is irresponsible for the labour union to ignore this and go on a strike," Lee said on Facebook.
The union vowed to continue negotiations to normalise subway operations as soon as possible, but said the company should present a "forward-looking" position on its workforce downsizing plan.
UK RAIL STRIKE PAUSE
Britain's RMT (National Union of Rail, Maritime and Transport Workers) and the industry body representing train operators said on Wednesday they had agreed a way forward in a long-running dispute which, if accepted by rail workers, could see a pause to disruptive strike action.
Passengers in Britain have faced severe disruption to their travel for almost 18 months as transport workers seek better pay due to a cost-of-living crisis, and oppose reform plans operators say are needed because the COVID-19 pandemic led to reduced rail travel.
The offer includes a backdated 2022 pay rise for staff and job security guarantees, the RMT and the Rail Delivery Group (RDG), which represents Britain's train operators, said.
"Following further negotiations between RDG and RMT, a Memorandum of Understanding (MOU) on the current dispute has been developed which sets out a process for a mutually agreed way forward," an RDG spokesperson said.
"If accepted, this MOU will terminate the national dispute mandate, creating a pause and respite from industrial action over the Christmas period and into Spring next year, while allowing for these important negotiations on proposed reforms to take place."
RMT General Secretary Mick Lynch said the MOU was a "welcome development".
A referendum by RMT members working across 14 train operators on whether to accept the agreement, closes on Nov. 30.
A spokesperson for the government's Department for Transport said the decision to put the agreement to a vote was "a positive step towards resolving this dispute".
"We hope RMT members will recognise the benefits, accept this offer and put an end to the RMT’s industrial action," the spokesperson said.
