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March 21, 2008
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| Amid mass strikes by ready-mixed concrete makers who want to raise their prices by at least 12 percent, the first official meeting between concrete makers and builders failed to reach a resolution after a six-hour meeting yesterday. Four representatives from the Korea Federation of Ready-mixed Concrete Industry Cooperatives, which accounts for 60 percent of Korea’s concrete market, met with five officials in charge of buying building materials. As reported in the Korean media, concrete makers asked builders to pay 12.5 percent more for their products. Builders maintained that their commitment was for a raise of only 4 percent. With no compromise in sight, industry experts predict that mass strikes by concrete makers are likely to be prolonged. About 680 concrete makers went on strike on March 19 and halted production. As a result, most nationwide construction projects have stopped. “Last year, concrete makers and builders went through seven rounds of negotiations,” said Choi Min-soo, a researcher at the Construction and Economy Research Institute of Korea. “Only cement prices went up last year. But this year gravel, oil prices and cement prices all increased. It seems like it will take longer to settle the dispute than last year,” Choi added. Asked about a plan to solve longstanding problems between concrete makers and builders, Choi said, “The builders should develop their own technologies, or consumers and builders should shoulder rising raw material prices, along with concrete makers. Currently, all the burden falls on concrete makers.” Members of the Korea Foundry Cooperative Association have shown no signs of resuming work. They called for a rise in cast-iron product prices earlier this month and announced that they will stop supplies indefinitely. Meanwhile, the Korea Federation of Small and Medium Business met with the Federation of Korean Industries yesterday to discuss ways to deal with increasing raw material prices. By Sung So-young Staff Reporter [so@joongang.co.kr] |
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