Taxi drivers in S. Korea threaten to go on strike

SEOUL : Taxi drivers in South Korea are threatening to go on a partial strike from January 30.

It is in protest against a government decision to block legislation that would give them subsidies for public transport.

The so-called "Taxi Bill" was passed in Parliament earlier this month, but was vetoed by President Lee Myung-bak and will go back to Parliament for another vote.

If Parliament fails to pass the bill, all taxis across the country will go on strike from February 20.

The question being asked in South Korea is whether taxis should be considered public transportation, the same way that buses, subways and trains are.

Most lawmakers in Parliament have said "yes", but President Lee's government disagrees.

Yim Jong Yong, Minister in the Prime Minister's Office, said: "Public transportation refers to mass transportation, operating along specific routes and fixed timetables, so taxis cannot be included in this category."

The taxi bill was passed in Parliament earlier this month, with overwhelming support from both the ruling and opposition parties.

Classifying taxis as part of the country's mass transportation system means they can get state subsidies on fuel, tax and other benefits, just like bus and subway operators do.

Reports say central and local governments spend about 1.2 trillion won - or about US$1.1 billion - subsidising the bus industry every year.

If taxis are included, critics say the government would have to more than double its spending on subsidies, costing it an additional 1.9 trillion won a year.

They point out that taxis account for only about 9 per cent of transportation, whereas buses make up over 30 per cent.

Subways and trains account for more than 20 per cent.

But taxi drivers argue that they should be considered part of the public transport system.

Koo Soo Young, head of the Taxi Drivers Union, said: "There is a reason why taxis should be classified as public transport. Buses carry about 13 million passengers in one day, while taxis carry about 11 million passengers. Also the number of trains and subways is only about half the number of taxis. This shows that a large number of people use taxis because the fares are so cheap."

Although the government has rejected the bill, it said it is willing to help the taxi industry.

It is planning to come up with a plan that would give some subsidies to taxi drivers and at the same time appease bus drivers, who worry they will have to share government subsidies with taxis.

Taxi drivers are threatening to go on strike over this bill. But experts have pointed out that subsidies in the Taxi Bill will likely only benefit taxi companies, and not the drivers themselves. So drivers will really need to think this through and see what the government has to offer first.

- CNA/ms

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