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CU Logistics Strike Ends, but 'Store Owner Compensation' Remains a Flashpoint

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →

[비즈한국] The CU logistics strike has been settled after 22 days, but the sparks of conflict remain. CU franchise owners are demanding compensation plans and consolation payments from BGF Retail282330, citing store damages caused by logistics disruptions. While the strike is over, BGF Retail now faces the challenge of resolving the issue of compensating its franchise owners.

The KCTU Public Transport Workers' Union Cargo Truckers Solidarity and BGF Logistics reached a collective agreement on the 29th. Photo = Reporter Park Jung-hoon
The KCTU Public Transport Workers' Union Cargo Truckers Solidarity and BGF Logistics reached a collective agreement on the 29th. Photo = Reporter Park Jung-hoon

Strike Stopped After 22 Days, But Store Owners Say "Damages Were Severe"

The KCTU Public Transport Workers' Union Cargo Truckers Solidarity and BGF Logistics, the logistics subsidiary of CU, have reached a tentative agreement. After overnight negotiations starting at 8:00 PM on the 28th, both sides reached a consensus at 5:00 AM on the 29th. However, the originally scheduled signing ceremony was postponed due to issues regarding the phrasing related to a deceased union member. The Cargo Truckers Solidarity stated that they plan to lift the blockade of major centers immediately after the signing ceremony.

During the negotiation process, the positions of both sides were clearly divided. While BGF Logistics prioritized the lifting of the blockade and the normalization of logistics, the Cargo Truckers Solidarity insisted on meeting their demands first, which included increased shipping fees, expanded holidays, a ban on claims for damages, and the withdrawal of injunctions against obstruction of business.

The agreement includes a 7% increase in shipping fees and an additional four days of paid leave per year, granted on a quarterly basis. It also covers civil and criminal immunity for Cargo Truckers Solidarity members, the withdrawal of injunctions against obstruction of business, and compensation plans for the bereaved family of a union member who died in a traffic accident at a protest site on the 20th. Essentially, BGF Logistics accepted most of the union's demands.

The Cargo Truckers Solidarity began a general strike on the 5th, blocking major CU logistics centers in Jincheon (North Chungcheong Province), Naju (South Jeolla Province), and Hwaseong and Anseong (Gyeonggi Province). On the 17th, they even blocked the BGF Food factory in Jincheon, disrupting the supply of ready-to-eat foods such as gimbap, sandwiches, and lunch boxes. On the 20th, the conflict intensified after a union member died while trying to block alternative vehicles from leaving the Jinju logistics center.

With this agreement, CU franchise owners are finally breathing a sigh of relief as they move past the long-term logistics disruption. However, reactions suggest that the difficulties on the ground were significant due to the cumulative sales losses during the strike. One franchise owner stated, "The impact was greatest in the Jinju, South Gyeongsang and Naju, South Jeolla regions, and store owners in the Anseong and Hwaseong areas of Gyeonggi also faced significant difficulties," adding, "Across the country, there was a repeated situation where logistics did not arrive on time or were delayed."

In the latter half of the prolonged strike, the scope of the damage expanded further. Store owners explain that business disruptions worsened as even core products like cigarettes were not properly stocked. Another franchise owner lamented, "Not only were fresh foods like gimbap and lunch boxes affected, but cigarette supplies were also blocked in the Naju and Gwangju regions," adding, "Cigarettes are a major item that accounts for a large portion of sales, and with supplies virtually cut off, it was practically impossible to operate normally."

BGF Retail plans to quickly normalize the delayed supply and focus on stabilizing store operations. A BGF Retail official said, "After internal reorganization, we plan to start operations at each center starting today, centering on Jincheon," adding, "We will strive to have all centers and factories 100% normalized within this week."

On the 21st, the Cargo Truckers Solidarity held a press conference in front of the Gyeongnam Provincial Police Agency regarding the death of their member, strongly condemning BGF Retail and the police. Photo = Cargo Truckers Solidarity website
On the 21st, the Cargo Truckers Solidarity held a press conference in front of the Gyeongnam Provincial Police Agency regarding the death of their member, strongly condemning BGF Retail and the police. Photo = Cargo Truckers Solidarity website

'Who Is Responsible for the Damage?' Is Conflict Set to Grow After the Strike?

While the strike has concluded, the issue of compensating CU franchise owners remains an unresolved task. Demands for compensation regarding the losses accumulated during the strike are also gaining momentum. The CU Franchise Owners Association has been demanding a compensation plan from BGF Retail since the 20th. The association stated, "Store owners have suffered serious damage. During the labor-management negotiations, we refrained from raising these demands so as not to influence the negotiations," adding, "We strongly demand that the franchise headquarters reorganize its system to prevent such situations and that both labor and management jointly compensate store owners for the damages they have suffered."

Currently, the owners' association is requesting that BGF Retail compensate for sales losses caused by undelivered goods and provide consolation payments to all stores. An association representative argued, "We met with the headquarters on the 20th to express our stance on damage compensation and have requested a specific response to our demands," adding, "Logistics delays occurred nationwide, not just in the blocked logistics center areas. The damage spread widely as the suspension of the Jincheon factory even disrupted the shipment of ready-to-eat foods. Given this situation, consolation payments for all stores are necessary."

CU franchise owners have come forward demanding compensation and consolation payments for the losses accumulated during the strike. Photo = Reporter Lee Jong-hyun
CU franchise owners have come forward demanding compensation and consolation payments for the losses accumulated during the strike. Photo = Reporter Lee Jong-hyun

Store owners are particularly concerned about the possibility of similar situations recurring in the future and are strongly demanding effective measures to prevent a recurrence. They point out that because this issue arose during the first round of negotiations following the implementation of the 'Yellow Envelope Law,' there is significant anxiety that similar situations could repeat themselves in the future.

Anxiety is spreading not only within CU but across the entire convenience store industry. It is reported that following this situation, some store owner groups from major convenience store brands such as CU, GS25, and 7-Eleven are preparing a joint statement.

An industry insider commented, "GS Retail007070 negotiated with the Cargo Truckers Solidarity late last year and reached an agreement relatively early," adding, "They chose to resolve the conflict early without letting it drag on, considering the impact on the entire group, and the terms of that agreement were considered quite groundbreaking in the industry at the time." They continued, "Speculation arose that the CU Cargo Truckers Solidarity side also entered negotiations with the expectation that they could elicit a similar level of agreement by looking at that case," adding, "Conversely, as the CU case becomes another benchmark, store owners' anxiety is growing because the GS25 Cargo Truckers Solidarity could raise similar demands again next year."

A representative of the CU Franchise Owners Association stated, "Third parties and small business owners should not suffer losses due to labor-management disputes. We are demanding institutional improvements from the government regarding these parts."

BGF Retail stated, "Following the conclusion of the negotiations, we plan to carefully examine the current status of damages to the company and franchise stores and prepare franchise support measures as soon as possible after listening to the opinions of those on the ground."

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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