Seoul city bus union, operators deadlocked over ordinary wage, strike looms Wednesday

Seoul city bus drivers' union has threatened to go on strike Wednesday, as the union and operators remain deadlocked over how to calculate the ordinary wage and other wage increases. The union is demanding that the standard hours used to calculate the ordinary wage be set at 176 hours a month and that hourly wages rise 7.85 percent. Operators say the union's demand for a further 500 billion won wage increase is excessive, on top of a lawsuit seeking about 1 trillion won ($747 million) in back pay. They said they would arrange alternative transportation if the strike goes ahead.

The Seoul Bus Transport Business Association, which represents city bus operators, said in a statement Thursday that "the union is demanding a further 500 billion won wage increase this year on top of the 1 trillion won ordinary-wage lawsuit," adding that "a strike will only draw public criticism."

The Seoul Bus Workers' Union is urging that the standard hours used to calculate the ordinary wage be set at 176 hours a month, along with a 7.85 percent hourly wage increase. Those standard hours are used to convert the monthly ordinary wage into an hourly rate — the fewer hours recognized, the higher the rate, and the more operators must pay.

Operators, however, are proposing 209 hours as the standard. An official from the Seoul Bus Transport Business Association said, "The union is arguing for 176 hours in the ongoing lawsuit, and the resulting claim for six years, from 2020 to 2025, amounts to 1.02 trillion won." The official added, "On top of that, they are making an unreasonable demand for 539.4 billion won in additional costs, including this year's 7.85 percent hourly wage increase — estimated at 117.5 billion won annually — and bonuses."

The official went on to say that operators had earlier proposed a 10.32 percent wage increase to the union, "which is by no means a wage freeze." The official added, "We proposed that if the court finalizes the standard at 176 hours, we would pay the retroactive difference, but if it rules for 230 hours instead, the union should return the excess payments."

The Supreme Court earlier ruled on a lawsuit filed by Dong-A Transportation drivers against their employer. It overturned parts of the lower court's ruling other than the 176-hour standard hours determination, and sent the case back to the Seoul High Court. The union argues this means the 176-hour standard has already been finalized. Operators contend otherwise, arguing they are still contesting the standard hours in the remanded retrial and that the matter has not been finalized.

The association's statement came a day after the union held a press briefing announcing the breakdown of the first mediation session at the Seoul Regional Labor Relations Commission. The union said Wednesday, "Operators have yet to respond to our demands, including the wage increase," adding that it "asked the commission to hold additional mediation sessions at any time, regardless of format."

The union and operators have held nine rounds of collective bargaining for 2026 since March without reaching an agreement, and the union filed for labor dispute mediation late last month. A second mediation session is scheduled for Tuesday at the commission.

Seoul city bus operators and the union have long disagreed over a 2024 Supreme Court en banc ruling recognizing regular bonuses as part of the ordinary wage. They have also disagreed over how to apply a subsequent ruling in a related ordinary-wage lawsuit filed by workers at Dong-A Transportation, a Seoul bus company.

On the strike planned for Wednesday, the association said it "will work closely with the Seoul Metropolitan Government to arrange alternative transportation." It added it will "do everything possible to keep at least some bus routes and sections running normally." It added, "If the union obstructs the normal operations of drivers who do not join the strike, we will take swift action with police and the city government to ensure they face strict punishment."

Meanwhile, on top of the city bus dispute, Seoul's village bus operators are also protesting to demand a fare increase. The Seoul Village Bus Transport Business Association has staged vehicle protests since Wednesday, arguing that the current 1,200 won fare needs to rise by at least 500 won.