Cargo Solidarity and BGF Logistics Sign Collective Agreement ... Transportation Fee Increase and Paid Leave Guaranteed

Includes Company Apology for Deceased Union Member and Other Provisions

The Cargo Solidarity Headquarters of the Public Transport Union of the Korean Confederation of Trade Unions and BGF Logistics held a collective bargaining signing ceremony at the Jinju Employment and Labor Office in Jinju, Gyeongnam on April 30.

The two parties reached an agreement on a 7% increase in transportation fees, the establishment of an upper limit for vehicle replacement costs, and the guarantee of paid leave once per quarter (a total of four days per year).

They also agreed to withdraw any claims for damages and applications for injunctions against Cargo Solidarity regarding the logistics disruptions that occurred during the recent strike and rallies.

Additionally, the agreement includes provisions ensuring the right to union activities such as rallies and events outside of working hours and states that no disadvantages will be imposed on workers due to their union membership.

The agreement also includes BGF Logistics’ acknowledgment of responsibility and an official apology for the death of a union member in an accident during the rally.

A collective bargaining signing ceremony between the Cargo Solidarity Headquarters of the Korean Confederation of Trade Unions Public Transport Workers' Union and BGF Logistics is taking place at the Jinju branch of the Ministry of Employment and Labor in Jinju, Gyeongnam.
Photo by Cargo Solidarity

Previously, Cargo Solidarity had demanded direct collective bargaining with BGF Logistics, the logistics subsidiary of BGF Retail, which operates the CU convenience store chain, and had continued their strike since April 5 at five logistics centers nationwide including Jincheon and Jinju.

Cargo Solidarity argued that work assignments and transportation fees flow from BGF Retail through BGF Logistics and transportation companies before finally reaching cargo workers, who are classified as specially-employed workers, and therefore demanded direct bargaining with the principal company. BGF, on the other hand, maintained that, due to the contractual structure involving logistics centers, transportation companies, and drivers, the principal company is not the direct employer, leading both parties to remain at an impasse.

During this process, on April 20, at a rally site in front of the CU Jinju Logistics Center in Jeongchon-myeon, Jinju, Gyeongnam, a union member was killed and two others were injured after being struck by a 2.5-ton cargo truck driven by a non-union worker, escalating the conflict.

Following the accident, both parties held an introductory meeting on April 22 and began negotiations. After five rounds of talks and coordination, they reached a tentative agreement at around 5 a.m. on April 28.

Initially, both sides planned the signing ceremony for the agreement to take place at 11 a.m. on April 29 at the Jinju Employment and Labor Office, based on the tentative agreement.

However, as wording regarding the union member who died after being struck by a transportation vehicle at the rally site had not yet been finalized, the ceremony was postponed once to 2 p.m. It was then tentatively delayed and, after finalizing all the wording, ultimately held at 11:49 p.m. just before midnight.

After the signing, Cargo Solidarity plans to return its members to work sites, proceed with funeral arrangements, and lift the blockades.

BGF Logistics also announced that once the center blockades are lifted, all centers and factories will return to normal operations within this week.

Kim Dongguk, head of Cargo Solidarity, stated, "This agreement is highly significant as it goes beyond simply raising transportation fees or improving working conditions. It marks a substantial recognition of Cargo Solidarity’s legitimacy as a bargaining representative and as a labor union, which had previously been denied. The company has acknowledged responsibility for the deceased union member, expressed its apology to the bereaved family, and promised specific agreements and measures for consolation."

He added, "However, the tragic death that occurred on site was caused by the excessive deployment of state power and an unreasonable crackdown. We will continue to demand a thorough investigation into the incident and the punishment of those responsible."

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