South Korea orders Asiana pilots to end strike

Unionised pilots at South Korea's second-largest carrier, Asiana Airlines, will end a strike after being ordered back to the job by the government, which has begun emergency mediation to resolve the nearly month-long dispute.
Sixty percent of Asiana's 839 pilots have been on strike since July 17, costing the company 164.9 billion won ($162.6 million) fall in revenues, as 32 percent of its flights were cancelled due to the strike.
"We regret that Asiana management and labour union have failed to reach an agreement, prompting a government mediation," labour minister Kim Dae-hwan said in a televised briefing.
Kim said the mediation would begin at 6 pm (0900 GMT) on Wednesday and said that Asiana pilots had to call off their strike for 30 days in order to avoid significant damage to the economy and the public interest.
"We'll return to work by tomorrow and negotiate under government mediation," a union spokesman said by telephone.
The union is seeking better working conditions and a greater say in management, while the airline has said it will not give in to pilots' demand to participate as observers in board meetings.
The strike hit during the summer travel season, and has been a big blow for Asiana. Many of its passengers have turned to its larger domestic rival, Korean Air Co.
The government estimates some 77.8 billion won worth of exports were affected by the strike, adding to its worries about cooling export momentum at a time when a recovery in domestic demand remains tentative.
South Korea, Asia's fourth-largest economy, is heavily dependent on air cargo. It exports almost all of its semiconductors and mobile phones by plane.
Exports of electronics goods, including microchips and cell phones, account for about 40 percent of total exports.
Persistent labour problems have led to a "Korean discount" on local shares, as investors anticipate declines in production and efficiency.
Asiana accounts for 37 percent of domestic flights in South Korea, 21 percent of the country's international flights and 21 percent of its cargo flights.