South Korean strike called off

The power workers have been striking for over a month

A general strike by trade union workers in South Korea, which was due to start on Tuesday, has been called off.

Up to 100,000 members of the Korean Federation of Trade Unions (KCTU) had been expected to walk out in support of electricity workers, who have been on strike for six weeks in a dispute over privatisation of the energy sector.

Any crackdown or mass sacking of power workers would lead to a power supply crisis during this summer's World Cup finals

KCTU statement

"Workers have been ordered to stay on their jobs and wait for further instructions," said Shin Hyon-hoon, a spokesman for the trade union.

After failing to reach a compromise in overnight negotiations, three government and labour delegates met two hours before the strike was to begin and managed to reach a deal. The details of the agreement are not yet known.

Widespread support

The KCTU has strongly backed the energy workers who embarked on industrial action in a bid to thwart the privatisation of power plants.

"Any crackdown or mass sacking of power workers would lead to a power supply crisis during this summer's World Cup finals," it warned in a statement.

The country is undergoing painful economic restructuring

South Korea and Japan are to host the global football tournament in June this year, and hundreds of thousands of people are expected to visit the region.

The government had ruled the strike illegal, but the KCTU had vowed that it would go ahead.

Privatising inefficient state companies is one of President Kim Dae-jung's priorities as he tries to reform the South Korean economy following the Asian financial crisis of 1997-1998.

Job loss fears

The privatisation programme forms a key part of the government's economic reform package, and it shows no signs of backing down.

About 5,000 workers at thermal power plants affiliated with state utility Korea Electric Power Corporation (Kepco) went on strike on 25 February to protest against government privatisation which they fear will lead to job losses.

Their action is widely supported among workers in other South Korean industries.

The rolling series of strikes had been expected to involve both the public and private sector, including health and transport workers.

Labour leaders at Hyundai Motor Company - South Korea's largest carmaker - and at Kia Motors and Ssangyong Motors, had agreed to join the strike on Tuesday and then decide whether to strike further.