The Seoul City Bus Labor Union called off a strike scheduled to begin with the first buses at 4 a.m., allowing all routes across the capital to operate normally.
The union and the Seoul Bus Transportation Association, representing bus operators, accepted a mediation proposal at around 1:50 a.m. during a second round of talks at the Seoul Regional Labor Relations Commission.
Negotiations had begun at 2 p.m. Tuesday and continued for nearly 12 hours before the two sides reached a deal to reach a raise of wages by 3.2 percent for 2026, 0.3 percentage point above last year's 2.9 percent increase.
The two sides, however, left their most contentious issue unresolved, including how many monthly working hours should be used to calculate ordinary wages.
Ordinary wages serve as a benchmark for calculating overtime and other statutory allowances in South Korea, meaning changes to the calculation can significantly affect workers' overall pay.
The union has argued for a 176-hour monthly basis, citing a lower-court ruling last year involving bus operator Dong-A Transportation and the reasoning of a Supreme Court decision in April. It had also sought a separate 7.85 percent increase in hourly wages.
Management and the Seoul Metropolitan Government argued that 230 hours should be used based on contracted working hours.
Management later proposed 209 hours as an alternative, taking into account court rulings and practices adopted by other local governments. It estimated that applying the 209-hour standard alone would effectively raise wages by about 6 percent to 7 percent and offered a package equivalent to a 10.32 percent increase when an additional wage hike was included.
The union did not agree to settle the ordinary-wage issue during the latest negotiations.
The two sides instead agreed to revisit the calculation after the Supreme Court hands down a ruling expected later this year in a case involving ordinary wages at a transportation company.
The Seoul city government withdrew emergency transportation measures prepared for the planned strike following the agreement.
The settlement removes the threat of widespread transport disruption just over a week before Chuseok, Korea's autumn harvest holiday, which falls on Sept. 25 this year.
AJP Takeaways:
- Seoul bus strike averted: The city bus union called off a strike set to begin with the 4 a.m. first buses Wednesday after nearly 12 hours of negotiations.
- Wages to rise 3.2%: Labor and management agreed on a 3.2 percent wage increase for 2026, up from last year’s 2.9 percent increase.
- Ordinary-wage dispute left unresolved: The two sides postponed a decision on the monthly hours used to calculate ordinary wages until after an expected Supreme Court ruling later this year.
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