Agreement raises transport fees about 7% and expands quarterly days off
Representatives of BGF and the Cargo Truckers’ Solidarity Division of the Korean Public Service and Transport Workers’ Union, under the Korean Confederation of Trade Unions, pose for a commemorative photo after signing the tentative agreement. (Photo provided by the Cargo Truckers’ Solidarity of the Korean Public Service and Transport Workers’ Union, under the Korean Confederation of Trade Unions)
BGF Retail announced on April 29 that its logistics subsidiary, BGF Logis, has reached a tentative agreement with the Cargo Truckers’ Solidarity Division of the Korean Public Service and Transport Workers’ Union, under the Korean Confederation of Trade Unions (Cargo Truckers’ Solidarity).
Regarding the damages to franchise owners from the logistics center blockades and strikes that began early this month, BGF Retail explained, “Now that the negotiations have been concluded, the company will closely examine the status of damages to the company and its franchisees and reflect the voices from the field.”
On the normalization of logistics, the company added, “Following the lifting of the blockades, we plan to begin operating each center, starting with Jincheon, from today after internal preparations,” and “We are aiming for 100% normalization of all centers and factories within this week.”
It was confirmed that in this agreement, transport fees will be increased by about 7%, and days off will be expanded to include one additional day per quarter, in addition to the existing weekly system.
Previously, the Cargo Truckers’ Solidarity had launched a strike, including blockading logistics centers, from the beginning of this month, demanding an increase in transport fees and more days off. The conflict intensified, especially after an incident on the 20th at a protest site in front of the CU logistics center in Jinju, Gyeongnam, where a replacement cargo truck struck union members, resulting in one death and two injuries.
After holding several rounds of negotiations starting with the first on April 22, the two sides reached a tentative agreement at around 5 a.m. on the 29th and officially signed the agreement at 11 a.m.
It was reported that in addition to the transport fee increase and expanded days off, the Cargo Truckers’ Solidarity also demanded the prohibition of claims for damages and the complete withdrawal of applications for preliminary injunctions to prohibit obstruction of business. The government also contributed to reaching the agreement, with Minister of Employment and Labor Kim Young-hoon visiting the Jinju Branch Office the previous day to engage in mediation.
The Cargo Truckers’ Solidarity plans to lift the blockades of major logistics centers immediately after the signing of the agreement.
Jung Suk-yee
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