Ulsan city bus drivers avert strike after last-minute agreement

Ulsan city bus drivers and management reached a dramatic agreement early on August 28, narrowly avoiding a strike that would have paralyzed public transportation in the city. The Ulsan Bus Transportation Business Association and the Ulsan Bus Branch of the National Automobile Labor Union signed the wage agreement adjustment around 3:50 a.m. at the Ulsan Regional Labor Relations Commission.

After more than 12 hours of intense negotiations, the parties found common ground. The agreement includes a 5% increase in basic wages (hourly rate), an extension of the retirement age to 65 starting in 2028, a 1,000 won increase in meal allowances, and a pilot program for cashless buses beginning in October.

With the agreement in place, city buses resumed normal operations starting with the first service on August 28. In Ulsan, which lacks a subway system, city buses are the sole form of public transportation. A strike would have affected 1,080 buses across 809 routes, representing 78.9% of the city's bus fleet. Last year, a one-day strike caused significant inconvenience to citizens.

Ulsan Mayor Kim Sang-wook expressed relief and apologized to citizens for the anxiety caused by the potential strike. He also highlighted the structural issues within the current "financially supported private system," which uniquely subsidizes bus company losses. The mayor strongly advocated for the establishment of the Ulsan Transportation Corporation and a transition to a fully public system.

However, substantial challenges persist. The city's plan to provide additional support to bus companies, including covering accumulated retirement liabilities of 81.3 billion won over 13 years, has raised concerns. There are worries that city funds might be misdirected into company management rather than addressing retirement obligations. The city cannot legally compel companies to use funds for retirement, relying instead on recommendations and public disclosure of retirement fund status. Furthermore, implementing the city's proposed financial support would require legislative changes, legal reviews, and public consensus.

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(I apologize) to the citizens who must have been very anxious (about the bus strike). I once again express my deep gratitude to the many people who worked hard for the city bus wage negotiations.