Subway strike looms as negotiations face challenges

A notice to subway users on Seoul Metro labor union's strike is seen on a digital signboard at Sindorim Station Lines 1 and 2, Nov. 30, 2022. Korea Times photo by Hong In-ki

Concerns are escalating over a looming Seoul subway workers' strike as they are voting for possible strike action amid a disagreement with the company over wage increases and a workforce reduction plan.

According to Seoul Metro, which operates the city’s Subway Lines Nos. 1 through 8, Sunday, its unionized workers have been voting on whether to launch a strike next month since Thursday, with the vote and result set to be concluded on Monday.

If its negotiation with the National Labor Relations Commission, scheduled for Tuesday, does not yield significant results, the union plans to hold a press conference on Wednesday, issuing warning of an impending strike. A general meeting of union members is also scheduled for Thursday.

Ahead of the vote, Seoul Metro and the union had held 10 rounds of negotiations since July, but a breakdown in talks caused labor representatives to apply for mediation, Oct. 4, over the dispute by the National Labor Relations Commission's Seoul office.

Seoul Metro labor union members hold a press conference in front of Seoul City Hall, announcing the result of the voting to decide whether to initiate a strike and outlining their strategic plans, Nov. 7, 2022. Yonhap

A persistent disagreement between Seoul Metro and the labor union over downsizing the workforce is protracting the dispute.

Seoul Metro plans to lay off 2,211 workers by 2026, constituting approximately 13.5 percent of the total workforce. The company, grappling with a substantial deficit, argues that workforce reduction is necessary to stabilize management.

According to the company, it incurred a deficit of 1.137 trillion won ($839 million) in 2020, 964.4 billion won in 2021, and 642 billion won last year. The 2021 and 2022 figures include financial assistance from the Seoul Metropolitan Government. Excluding this assistance, the company has sustained losses in the range of 1 trillion won for the third consecutive year.

The company's cumulative deficit reached 17.68 trillion won as of last year.

However, the union opposes the company’s management plan, claiming that it unfairly passing the burden to workers. They demand a withdrawal of the reduction plan, arguing that excessive reduction in the workforce can directly jeopardize safety.

Meanwhile, Seoul Metro has prepared for a possible strike, signing an agreement with labor representatives on Sept. 25. The agreement stipulates that workers can return within a defined range in the event of a social or natural disaster, even during a strike.

“We will continue negotiations with labor representatives while pressing forward with management innovation to address the massive deficit. Additionally, we will implement emergency transportation measures to mitigate the public inconvenience should a strike occur,” a Seoul Metro official said.