[Why&Next] Yellow Envelope Act Escalates into CU 'Violent Clash'... Convenience Stores on High Alert

Cargo Solidarity Strike: Subcontracted Cargo Workers Demand Better Conditions
Partial Blockade of CU Logistics Centers and Production Facilities
Casualties Reported at Jinju Rally on the 20th
Stalemate Over Demands for Principal Employer to

The indefinite general strike by the CU branch of the Cargo Solidarity under the Korean Confederation of Trade Unions (KCTU) Convenience Store Division, which is demanding better treatment for cargo workers, is reaching a critical point. This escalation follows an incident during a rally calling for direct negotiations with the operator BGF Retail and its logistics subsidiary BGF Logis, where one Cargo Solidarity member died and two others were injured. As Cargo Solidarity members blockaded some CU logistics centers and production plants during the strike, franchise owners who are now unable to ship products are reporting a decline in sales and related damages.

Due to the strike by the Cargo Solidarity under the Korean Confederation of Trade Unions, some CU logistics centers and production facilities have been shut down, causing disruptions in the supply of products including ready-to-eat meals. A notice regarding the situation is posted at a CU store. Reader tip

Traffic Accident at Jinju Cargo Solidarity Rally Results in Casualties

According to the Gyeongnam Provincial Police Agency and the fire department on April 20, at around 10:32 a.m. on that day, a 2.5-ton cargo truck collided with rally participants in front of the CU Jinju Logistics Center in Yeha-ri, Jeongchon-myeon, Jinju-si, Gyeongnam. One member in his 50s was transported to the hospital in cardiac arrest and was later pronounced dead. Two other members sustained serious and minor injuries, respectively, but are not in life-threatening condition.

The police believe the accident occurred as union members blocked a logistics vehicle from leaving the premises. At the scene, a union vehicle also rammed through a police barricade held by officers with shields and then rushed toward the center's main gate, resulting in a police officer in his 20s suffering a head injury. The rally, organized by the Gyeongnam headquarters of Cargo Solidarity to urge BGF Retail to enter joint negotiations, began on April 16 and was scheduled to continue until May 11. A police official stated, "We are currently working to determine the exact facts of the incident."

On the afternoon of the 20th, members of the Cargo Solidarity Union gathered at the BGF Logistics Jinju Center in Jeongchon-myeon, Jinju-si, Gyeongnam, and sang the "March for the Beloved" to commemorate their colleague who passed away earlier that morning at the rally calling for the protection of the rights of CU logistics workers. Photo by Yonhap News.

“Enter into Direct Negotiations”...Logistics Network Blockades

This strike is part of an indefinite general strike that the Cargo Solidarity launched on April 7 to demand improved treatment for delivery drivers. The CU branch of Cargo Solidarity is also demanding that BGF Retail, the parent company, participate in negotiations. This is in line with the revised Trade Union Act, known as the "Yellow Envelope Law" (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), which came into effect on March 10. The revised Yellow Envelope Law broadens bargaining rights to include subcontracted and special employment workers and eases the legal burden associated with strikes, thereby strengthening overall labor rights.

BGF Logis, a subsidiary of BGF Retail, is responsible for CU's logistics operations. BGF Logis operates 25 logistics centers nationwide, and these centers directly hire individual cargo drivers. However, the cargo workers who are members of the striking CU branch of Cargo Solidarity are not employed by BGF Logis but are special employment workers affiliated with transport companies individually contracted by the logistics centers.

Taking the implementation of the Yellow Envelope Law as an opportunity, these workers are demanding that BGF Retail and BGF Logis engage in dialogue to address issues such as adjusting transport fees, which have remained stagnant for decades, and improving working conditions. In addition to blockading the entrances and exits of major logistics centers in Hwaseong and Anseong (Gyeonggi Province), Naju (Jeonnam Province), and Jinju (Gyeongnam Province), they also blocked access to the BGF Food factory in Jincheon, North Chungcheong Province, starting April 17.

Park Jonggon, head of the Gwangju Regional Headquarters of Cargo Solidarity, stated, "While consumer prices rise by 2-3% annually, transport fees have only increased by 0.5-0.7%, essentially putting us in the negative." He added, "For the first time in 20 to 30 years, our members have called for dialogue with CU capital and have sent six official documents over 90 days, but the only response has been a reduction in shipments and claims for damages, which is union suppression."

Another issue raised by cargo workers is the substitute driver fee. This refers to the expense a worker must pay out of pocket to find a replacement when unable to make deliveries due to illness or unavoidable circumstances. Yoon Jungwook, head of the CU branch of the Seoul-Gyeonggi Regional Headquarters of Cargo Solidarity, explained, "The substitute driver fee ranges from at least 140,000 won to as much as 450,000 won per day." He continued, "Because convenience store deliveries typically require two rounds per day (morning and afternoon), if a substitute is used, the fee can reach up to 900,000 won, all borne by the worker." He also said, "When sick, workers earn nothing but still have to pay the substitute fee, which means they cannot afford to stop working even if their health is at risk. We urge the government to establish a system that makes these substitute fees more reasonable and to ensure BGF Retail participates in negotiations in good faith."

Disrupted Product Supply at Stores...Franchise Owners Say "Livelihoods at Risk"

BGF Retail maintains the position that BGF Logis is responsible for logistics operations and that each logistics center sets freight rates and contract terms through consignment agreements with independent transport companies, so it does not have a direct employer relationship with cargo workers. As the two sides remain far apart, the blockade of some logistics centers and production facilities is causing damage to franchise owners who operate CU stores.

On online communities run by franchise owners, there is a flood of posts and photos showing empty shelves due to the lack of ready-to-eat meals such as lunch boxes, gimbap, and sandwiches. The disruption at production plants is also affecting the supply of CU's private brand (PB) products. One CU franchise owner said, "Fresh foods make up a large portion of my sales, and with deliveries disrupted, my daily revenue has dropped by as much as 50% compared to last week. Sales were already down, so this is extremely tough for us. If this situation is not resolved within this month, I plan to ask the Fair Trade Commission to allow closure without penalty."

Franchise owners are divided, with some blaming the political authorities and government that enacted and passed the Yellow Envelope Law and others criticizing the response of the head office. Park, the regional head, stated, "CU capital knew that disruptions in deliveries would occur if we stopped working, yet they stood by for 90 days and are now shifting the blame to cargo workers. If this situation continues, we will have no choice but to escalate our struggle even further."

The retail industry, including competitors, is also closely monitoring the situation. An industry official commented, "While each company differs slightly in how logistics centers are operated and how cargo workers are employed, similar conflicts could arise at any time following the amended law. Since the damage directly affects franchise owners, who are small business owners, there is significant anxiety in the industry."

This content was produced with the assistance of AI translation services.