City buses are waiting at the public garage in Yulli, Ulju-gun, Ulsan. /Courtesy of News1

The Ulsan city bus labor and management reached an agreement on wages and collective bargaining this year. As a result, the Ulsan city bus, which had stopped operating from 4 a.m. on the 7th, will resume normal operations starting on the 8th.

According to the Korean Confederation of Trade Unions (KCTU) and the National Federation of Automobile Labor Unions, the Ulsan city bus union and the user group, the Ulsan City Bus Transportation Business Association, reached a consensus on the joint labor-management agreement around 10:52 p.m. on the 7th.

Earlier, the Ulsan city bus labor and management had engaged in negotiations six times since March 5, and went through 12 mediation meetings at the Ulsan Labor Relations Commission, but were unable to find common ground.

On the same day, among the six companies with Ulsan city bus union branches, five companies including Namseong Passenger, Yujin Bus, Ulsan Passenger, Hakseong Bus, and Hanseong Transportation signed the joint labor-management agreement at a post-mediation meeting held at the Ulsan Regional Labor Commission.

It is reported that the labor management of Daewoo Passenger, the remaining company, has verbally agreed to the contents of the agreement. It is said that the labor management did not sign the agreement because the company representatives were absent.

The key point of the joint labor-management agreement of the Ulsan city bus labor and management is to incorporate the regular bonuses into the standard wage system. Previously, the regular bonuses, holiday return expenses, and summer vacation expenses, which were paid separately from the base salary in the wage system, have been eliminated and included in the standard wage hourly rate.

According to the Ulsan city bus labor and management, this revised wage system will result in a 10.18% increase in the total wages of the drivers. This is due to the application of the standard wage to the base salary and various allowances.

With the resolution of the Ulsan city bus labor-management negotiations, the city bus, which had gone on strike starting from the first bus at 4 a.m. on the same day, will resume operations starting from 4 a.m. on the 8th. Previously, 702 buses participated in the strike, operating on 105 routes. This accounts for approximately 80% of the total city buses (889 buses on 187 routes).

The city of Ulsan estimated that the deficit coverage amount will increase by about 14 billion won this year due to the agreement between the city bus labor and management. The Ulsan city bus operates under a 'financially supported private system,' where a private company runs the routes, and 96% of the deficit is supported by the local government. The city of Ulsan provides about 110 billion won annually to support the bus companies.