South Korea govt intervenes to end strike

South Korea govt intervenes to end strike

Associated Press, Seoul

The South Korean government invoked emergency powers on Sunday to
end a walkout by unionized pilots at Korean Air Co., the nation's
largest airline.

The intervention marked the fourth time since 1969 -- and the
second this year -- that the government has utilized its right to
bust strikes in industries deemed crucial to the national
economy.

Labor Minister Kim Dae-hwan made the announcement at a
nationally televised press conference on the fourth day of the
strike, which began early last Thursday when pilots walked off
the job seeking higher pay.

Korean Air, the nation's largest passenger carrier and the
world's biggest cargo airline, was forced to cancel hundreds of
flights, including domestic and international passenger service
as well as cargo routes.

The airline flies over much of the world. Its extensive
passenger network includes Chicago, London, New York, Prague,
Rome, Moscow, Istanbul, Los Angeles, Vladivostok, Tokyo, Toronto,
Honolulu, and Sydney, among others.

The government took a hard line on the strike from the
beginning, indicating it wouldn't wait the 25 days it took before
forcing an end to a walkout by pilots at Asiana Airlines Inc.,
the country's second-largest carrier, in August.

"The repeated strikes by airlines are hurting the competitive
power of the national economy as well as its credibility," Kim
said at the press conference, calling "very regrettable" the
government being forced to act.

Union spokesman Park Byung-ryul said that striking pilots
voted overwhelmingly to adhere to the order to return to work,
but were angry with the government's move.

"It's unfair," Park said, adding government intervention means
management never had to change its negotiating position.

Park, who flies long-haul Boeing 747-400 jets for the airline,
called the action "harmful to future relations" between the
company and the labor union.

The union made several compromises in negotiations after the
strike began. Korean Air made no concessions, sticking with its
offer of a 2.5 percent increase in basic pay, which pilots had
criticized as insufficient.

In 2004, captains at Korean Air earned an average of 120
million won (US$116,000) in total compensation including basic
pay, flight pay and bonuses, according to the airline. First
officers earned an average of 88 million won.

The government also intervened to stop labor unrest in 1993 at
Hyundai Motor Co. and in 1969 at Korea Shipbuilding Corp.

Under the powers, the ministry can order the pilots back to
work and force the two sides to negotiate. If they fail to
achieve an agreement, the government can force one through a
special arbitration body.

The government estimates that a total of 723 flights out of
1,174 scheduled were suspended during the strike, with some
98,000 passengers and 7,130 tons of cargo affected.

"The losses incurred by the strike at Korean Air are five-to-
six times that of Asiana," Kim said, citing in particular harm to
South Korea's exporters of high-technology products.