Rail Union Could Strike Over Debt Aid

Korail, Korea’s national railroad agency, wants the government to assume the Korean express railway system’s management liabilities, worth 4.5 trillion won, in order to normalize the country’s railroad management system, a Korail report said yesterday.

It also said a Korail Workers` Union strike was possible during this process if that, and other union requests, are not met.

Reports indicate that the government`s position on this issue is in line with Korail`s, and this is likely to spark debate over whether public enterprise debt can be paid with household taxes.

Korail announced yesterday in a report submitted to the government’s Construction and Transportation Committee titled: "2006 Business Status" that the government should assume express railway management liabilities totalling 4.5 trillion won, and either exempt it from paying 515 billion in railroad facility usage fees (that are payable to the Korea Rail Network Authority) or extend its liabilities for another 10 years.

Korail also declared, "The compensation for financial losses incurred by a number of public service obligations, including reduced tariffs for the old and the disabled, is currently fixed at 348.6 billion won this year, but should be increased to a more realistic 460 billion won.”

It added that if the requests outlined by the corporation`s workers` union: the remittance of express railway management debts; the exemption from railroad facility usage fees; the total payment of public service obligations; and a complete reinstatement of workers, are denied, the union will call for a general strike starting March 1.

The corporation also made its own plans for renovation, including “refining businesslike, responsible management systems, concentrating on cutting expenses, and effectively managing the work force.”

In a New Year’s press conference held on January 25, President Roh Moo-hyun addressed the Korail deficit and vowed to seek after a radical solution by taking the matter into the administration`s own hands, rather than leaving it to Korail.

An aide to a ruling party lawmaker on the Construction and Transportation Committee said, "I heard that a joint promotion team, a branch under the Office for Government Policy Coordination, was established after President Roh`s remarks. Although the report claims to voice Korail`s opinions, in reality, it reflects the government`s policy."

A Korail official said, "If the demands of the report are granted, Korail may become profitable again around 2010."

In-Jik Cho Tae-Hun Hwang cij1999@donga.com beetlez@donga.com