Displaying items by tag: Drivers

India: The state government of Himachal Pradesh has announced the forthcoming reopening of Adani Group's Darlaghat and Gagal cement plants. Reuters has reported that truck drivers' unions agreed to a reduced freight rate offered by Adani Group. The producer shut the plants on 15 December 2022, claiming that it faced prohibitively high operating costs, including high freight charges.

Truck drivers will now receive rates of US$0.12/t/km for despatches in small delivery trucks and US$0.11/t/km for dispatches in articulated trucks. Drivers operating at the Darlaghat cement plant previously earned fees of US$0.13/t/km, while those operating at the Gagal cement plant had earned fees of US$0.14/t/km. Adani Group had reportedly sort to lower rates to US$0.07/t/km. Unions have criticised the newly negotiated rates, pointing out the UltraTech Cement recently raised the wages of drivers at its Baga cement plant in the state to US$0.13/t/km.

India: The state government of Himachal Pradesh says that it will take 'legal action' against Adani Group should it fail to reopen its Darlaghat and Gagal cement plants. The Times of India newspaper has reported that measures may include cancellation of the cement producer's relevant land leases. Out-of-work truck drivers agreed to cancel a state-wide road blockade in protest against the closures after the government promised a 'resolution' on 4 February 2022. It now plans to hold talks with Adani Group, in which it will relay truck drivers' offer of an 11% reduction in per-kilometre freight rates to US$0.12/t from US$0.14/t.

Himachal Pradesh industries minister Harshwardhan Chauhan said that the state government is empowered to take drastic measures in defence of Himachali people's interests.

Geological Survey of India (GSI) officials are reportedly investigating alleged illegal mining at the sites of the Darlaghat and Gagal cement plants.

India: Police arrested 50 truck drivers and union leaders at protests outside Ambuja Cements’ Darlaghat cement plant in Himachal Pradesh on 1 February 2023. The events marked the 50th day of on-going protests against Adani Group’s closure of the Darlaghat and Gagal cement plant following its acquisition of Ambuja Cements and ACC in September 2022. The Times of India newspaper has reported that cement truck driver’s unions are now threatening to escalate the protests to a ‘chakka jam’ demonstration across Himachal Pradesh. This would involve blocking roads at five planned locations in the state. Union representatives will meet Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on 3 February 2022. Sukhu has repeatedly expressed support for protestors, saying that the state will not tolerate exploitation.

United News of India has reported that protestors on 1 February 2023 voiced criticism of Indian ‘lawlessness’ and of Adani Group and Prime Minister Narendra Modi’s Bharatiya Janata Party’s (BJP) power ‘monopoly’ in the country.

Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.

Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.

Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.

In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.

What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.

The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.

South Korea: The government ordered 2500 cement truck drivers to return to work on 29 November 2022. The Korea Herald newspaper has reported that drivers in the sector who continue their strike will be subject to criminal sanctions of up to three years in prison or a US$22,600 fine, and will have their truck driving licences suspended. The government explained that the order is justified due to cement truck drivers' failure to present 'good cause' for the industrial action.

President Yoon Suk-Yeol said "Taking the livelihoods of ordinary people and the national economy hostage to look out for their own needs is not justifiable."

Cement truck drivers make up 35% of a total 7080 truck drivers from 200 companies across the South Korean economy participating in the strike, which began on 24 November 2022.

South Korea: Cement producers say that an on-going truck drivers' strike will force them to suspend production from 5 December 2022 if it continues for another week. Yonhap English News has reported that Industry Minister Lee Chang-Yang spoke to industry representatives on a visit to Asia Cement's Jecheon cement plant in Chunbuk. The cost of missed deliveries after four full days of the strike on 28 November 2022 was US$34.6m.

South Korea: A nationwide truck drivers strike caused 200,000t of cement to remain undelivered from plants on its first day on 24 November 2022, according to the Korean Cement Association. Yonhap English News has reported that the disruption continued unchanged on 25 November 2022.

South Korea: Truck drivers went on strike across South Korea on 24 November 2022. Reuters News has reported that the drivers demand that a government pay scheme be made permanent and extended to drivers in all sectors. A previous eight-day strike in June 2022 cost the South Korean cement industry US$79.8m. The Korean Cement Association said that most customers do not have cement in inventory beyond three days' supply, and will begin to run out from 27 November 2022.

South Korea: A truck driver strike has ended after seven days. The Korea Herald newspaper has reported that the government has agreed to extend a freight rate-based minimum wage system. The total cost to the cement industry was US$70.6m,

South Korea: Korea Cement Association (KCA) members’ cement shipments fell by 90% over two days to 13,000t on 8 June 2022 from 180,000t/day prior to a truck driver strike which began on 7 June 2022. The association claimed that producers lost US$23m-worth of sales in the first two days of the strike, which also affects other industries. 17 ready-mix concrete batching plants in the Seoul area have suspended operations. The Korea Herald newspaper has reported that the association representing the construction industry has also voiced concerns about the supply situation.