The odds have grown that Seoul city buses will come to a halt again on the 16th of this month. The city bus labor union approved a strike vote. On the first day of the strike in January, the Seoul city bus operating rate was just 6.8%. More than 90 out of every 100 buses stopped.

The Express Bus Terminal Station is quiet during the 2024 Seoul city bus strike. /Courtesy of ChosunBiz DB

With fears rising again of a "commute meltdown" after eight months, calls have been reignited to designate city buses as a "mandatory public-interest business," like rail, subways, and aviation. The idea is to ensure a minimum right to mobility for residents by requiring a certain share of buses to run even during a strike. The Seoul city government recently asked the central government again to improve the related system.

◇Even if 90% of buses stop, there is no substitute… Seoul makes a third request for system improvements

According to the Council of Governors Association on the 13th, the Seoul city government recently submitted a policy proposal to the central government asking that city buses be included as a mandatory public-interest business. The aim is to create a legal basis to keep a certain share of buses running even if a strike occurs.

The current Trade Union and Labor Relations Adjustment Act defines businesses that could cause major harm to the daily lives of the public or to the national economy if operations stop as mandatory public-interest businesses. Rail and urban rail, aviation, hospitals, and electricity, water, and gas are typical examples.

City buses run through the bus transfer center at Seoul Station. /Courtesy of News1

In mandatory public-interest businesses, labor and management determine the work and staffing that must be maintained during a strike through a "mandatory maintenance work agreement." Within certain limits, substitute personnel may also be used.

By contrast, city buses are classified only as public utilities. While the dispute mediation period is longer than at a general establishment, once a strike begins, mandatory maintenance work does not apply. There are also constraints on deploying substitute personnel, so if a large-scale strike occurs, operating rates are bound to plunge, the Seoul city government said.

This is the third time the Seoul city government has requested that city buses be designated a mandatory public-interest business. After the 2024 city bus strike, it submitted related content as a central regulation improvement task for local governments and as a policy proposal to the Council of Governors Association, and last year it made the same proposal through the Central-Local Government Policy Council of the Ministry of the Interior and Safety.

◇Central ministries also out of sync… "Guarantee mobility rights" vs. "Protect the three labor rights"

Positions within the government are divided. The Ministry of Employment and Labor (MOEL) is cautious about adding city buses to the list of mandatory public-interest businesses. It says the scope should be applied strictly, considering the constitutional purpose of protecting the three labor rights. There are also concerns that requiring minimum operations during a strike could effectively restrict a union's right to strike.

City buses are lined up at the Jangji Public Bus Garage in Songpa-gu, Seoul. /Courtesy of News1

The Ministry of Land, Infrastructure and Transport, on the other hand, believes designating city buses as a mandatory public-interest business is necessary. That is because when a strike occurs, the impact on commuting, school travel, and daily life is significant, and buses run under the semi-public management system—where local governments subsidize operating deficits—have a level of public interest comparable to subways.

In particular, in areas without subways, city buses are effectively the only public transit option. Ulsan and Changwon in South Gyeongsang are representative examples.

The two ministries also offered differing views on a bill to amend the Trade Union and Labor Relations Adjustment Act, introduced earlier this year by Shin Dong-wook of the People Power Party. The amendment would add scheduled-route passenger transport businesses to the current scope of mandatory public-interest businesses.

◇Hundreds of billions of won in fiscal support every year… "Minimum operations needed in line with public interest"

The fact that major local governments, including Seoul, operate city buses under a semi-public management system also bolsters the case for designation as a mandatory public-interest business. Under the semi-public system, local governments manage routes and fares and provide fiscal support for any expense not covered by fare revenue. After the Seoul city government introduced it in 2004, it expanded to major cities such as Busan, Incheon, Daejeon, Daegu, Gwangju, and Changwon.

Members of the Seoul City Bus Union cast ballots for or against industrial action (strike) on the 11th at a polling station set up in the office of the Jingwan Public Bus Garage in Eunpyeong-gu, Seoul. /Courtesy of Yonhap News

The fiscal burden on local governments is also growing. The Seoul city bus fiscal deficit averages 603.3 billion won over the past five years. This year, a shortfall of 512.7 billion won is also expected. Liabilities accumulated through the previous year total 898.6 billion won. Additional labor costs from the application of the base wage are not yet reflected in these figures.

Labor and management are also trading barbs over "annual salary" amid the current wage talks. The management side, the Seoul Bus Transport Business Association, said that if the hourly wage increase demanded by the union and the base wage are reflected, the annual wage would approach 85 million won. The union countered that the claim was exaggerated, releasing earned income withholding receipts. According to the data released by the union, last year's pay for an employee with 20 years of service was about 55.55 million won.

A Seoul city official said, "Workers' legitimate right to strike must be fully respected," but added, "It should not be repeated that, with bus operating rates dropping into the single digits during strikes, daily life—commuting and school—effectively grinds to a halt." The official added, "We need an institutional mechanism that guarantees minimum bus operations so labor rights and residents' mobility rights can be balanced."

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