The Ulsan city bus union and management reached an agreement on this year’s wage and collective bargaining negotiations just 19 hours after the union went on strike. After the bus services were halted from the first bus on the 7th of the month, operations resumed as normal from the first bus on the 8th. The Ulsan Bus Union, part of the Korean Confederation of Trade Unions’ National Automobile Workers’ Union Federation, and the Ulsan City Bus Transportation Business Association, representing the employers, produced an agreement during a follow-up mediation meeting at the Ulsan Regional Labor Committee on the evening of the 7th.
Out of the six companies where the Ulsan Bus Union has branches, the union and management of five companies (Namseong Passenger, Yoojin Bus, Ulsan Passenger, Hakseong Bus, Hansung Transport) signed the agreement. The remaining company, Daewoo Passenger, couldn’t sign due to the absence of a company representative but reportedly agreed to the terms.
The key point of the agreement is to include regular bonuses in the base salary to revamp the wage structure. The regular bonuses, holiday travel expenses, and summer vacation pay that were previously paid separately from the basic salary will now be included in the regular hourly wage. Applying this revised regular wage to the basic salary and various allowances results in a 10.18% increase in the total wages of drivers. The union and management also agreed on an additional three days of paid summer vacation.
With the settlement reached, all 702 buses on 105 routes, which had been halted due to the strike, resumed operation starting with the first bus at 4 a.m. on the 8th. Before this, the union and management had engaged in six rounds of negotiations since March 5th and attended 12 mediation meetings at the Ulsan Regional Labor Committee but were unable to agree.
The strike led to 80% of the city buses (187 routes with 889 buses) ceasing operation, causing inconvenience to many citizens. The dramatic resolution of the negotiations averted potential disruptions for commuters on Monday, the 9th. Ulsan’s city buses are operated by private companies with 96% of the deficits supported by the local government in a “financial support type privatization” system. The intent of the Ulsan city government played a significant role in the agreement process. Ulsan city supports bus companies with deficit compensation of 110 billion won annually, and due to this agreement, the city’s deficit compensation for the year is expected to increase by about 14 billion won.