Seoul Bus Strike Looms as Wage Formula Talks Stall

Union and Employers Clash Over 176-Hour vs. 209-Hour Base for Ordinary Wages Union to Weigh Scale and Timing of Collective Action on the 3rd Strike Possible After Vote if Labor Board Mediation Fails

Society|
|
By Park Chang-gyukyu@sedaily.com
||
Buses sit parked at a depot in Susong-dong, Eunpyeong-gu, Seoul, on Jan. 14, as Seoul city buses launched their first strike in two years and halted service for the longest period on record. Yonhap News - Seoul Economic Daily Society News from South Korea
Buses sit parked at a depot in Susong-dong, Eunpyeong-gu, Seoul, on Jan. 14, as Seoul city buses launched their first strike in two years and halted service for the longest period on record. Yonhap News

Seoul's city bus operators and their union have failed to narrow differences over how to calculate ordinary wages, raising the prospect of another strike. The Seoul City Bus Labor Union will hold an emergency meeting of branch chiefs on the 3rd to discuss the scale and timing of collective action, including a walkout.

The two sides held nine rounds of collective bargaining from March through the 28th of last month without reaching a deal, according to the Seoul Metropolitan Government and the union on the 2nd. The union filed for mediation with the Seoul Regional Labor Relations Commission on the 31st of last month, and the mediation period runs through the 15th of this month.

At the heart of the dispute is the number of contractual monthly working hours used to calculate ordinary wages. On April 30 this year, the Supreme Court upheld a lower court ruling in an ordinary wage lawsuit involving Donga Transportation that recognized bonuses as part of ordinary wages and set contractual monthly working hours at 176. The court, however, sent back part of the ruling, saying unpaid allowances must be calculated based on the guaranteed hours agreed between labor and management even if actual overtime and night work fell short of those hours.

The union argues that the 176-hour standard is therefore already settled and cannot be contested again in the remanded case. It also contends that unpaid wages must be paid according to the ruling rather than negotiated. Management counters that ordinary wage lawsuits involving other bus companies are still pending, making it difficult to apply the 176-hour standard across all of Seoul's city buses on the basis of the Donga Transportation ruling alone. It has proposed first overhauling the pay structure using 209 hours, which includes paid weekly holiday hours, and settling accounts later depending on the outcome of the other lawsuits. For the same pay, a shorter calculation base raises the hourly ordinary wage, increasing overtime and night-work allowances as well as the scale of unpaid wages.

This year's wage talks are also at an impasse. The union is demanding a 7.85% pay increase, while management has proposed a freeze. If no agreement is reached within the mediation period, the union can launch a strike after steps including a vote on industrial action.

In a statement the same day, the union said unpaid wages are "not a subject of negotiation that can be cut or haggled over, but an obligation that must be repaid under the law."

Original reporting by Park Chang-gyu for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

Watch · Seoul Economic Daily

More →

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Company Atlas

Preview
Market Ontology · The Feedback LoopKFTC 2025 · 92 groups · 121,954 articles

An English ontology of the Korean market — how companies, the media, the government and the National Assembly move each other in a loop. Korea's named controlling persons and designated business groups are a mechanism, not a risk to be priced blind.

SIGNAL

Now live
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

SIGNAL English Edition is live — Korea's deal desk reporting in English. M&A, IPOs, private equity and fund flows, covered daily for global institutional investors. Browse free; subscriber-only scoops at the 50% intro rate.