Unionized city bus drivers in the southeastern city of Changwon began a walkout early on Wednesday after labor and management failed to narrow differences on the retirement age and other welfare issues.

According to the municipal government, the union decided to launch the strike at around 5:10 a.m., when daily operations normally start, resulting in some 700 buses run by nine operators, or around 95 percent of buses in the city, suspending services.

Changwon City has begun temporary operation of 152 chartered and public buses and dispatched 800 taxis on bus routes during rush hour.

While agreeing on a three-point-five-percent wage hike, the two sides came short of striking a deal on increasing the retirement age from 62 to 63.