Reprieve for Lee as S.Korea truckers return to work
By Jack Kim
SEOUL, June 20 (Reuters) - South Korean truckers slowly returned to work on Friday after agreeing to a deal for higher pay, ending a week-long strike that paralysed ports and dented beleaguered President Lee Myung-bak's economic growth plans.
The end of the strike eased some pressure on Lee, who was expected to announce a shake-up of his top aides on Friday -- a day after promising a fresh start for his four-month-old government and apologising for an unpopular U.S. beef import deal that sparked mass street protests.
Former construction boss Lee cruised to a December election victory, but his pledges for pro-business economic reforms have been delayed as his support rate has fallen below 20 percent.
More than 7,000 of 13,000 striking truckers were still off the job on Friday and the transport of cargo remained halted for blue-chip companies including Samsung Electronics (005930.KS) and Hyundai Motor (005380.KS) as talks continued on details of a pay hike, the transport ministry said.
The truckers strike, along with a brief work stoppage this week by construction workers, cost South Korea more than $6.5 billion and saw the transport of cargo at ports grind to a halt in the export-driven country.
The deal reached on Thursday between the union that struck over soaring fuel costs and major transport companies sets a 19 percent hike in pay as a guideline for negotiations, the transport ministry said in a statement.
Analysts said anger at the Lee government could flare up again once results are released of talks between South Korean and U.S. trade officials in Washington over voluntary restraints for the U.S. beef trade.
The envoys were trying to find a way to provide U.S. government assurance on a private-sector pledge not to export beef from cattle older than 30 months, which is seen in South Korea as posing a higher risk of mad cow disease.
South Korea was once the third-largest importer of U.S. beef until it banned the product in 2003 due to an outbreak of mad cow disease in the United States.
Political commentator Yu Chang-seon said Lee may have quieted public criticism with the apology and the shake-up of his inner circle but street protests could again flare up.
"A lot will depend on how the final results of the beef talks turn out," Yu said. The results could come on Saturday, officials said.
Analysts said Lee will not be able to implement his reform plans that include privatisation of state assets and corporate tax cuts unless he can win back public support.
Lee also needs parliament, which is now controlled by his conservative Grand National Party, to open and consider his reform bills, but a boycott by the left-of-centre opposition angered by the beef deal has kept it shut. (Editing by Jon Herskovitz and Alex Richardson)
