Source: BGF Retail

 

 

[Alpha Biz= Kim Jisun] BGF Retail, operator of convenience store chain CU, and the truckers’ union under the Korean Confederation of Trade Unions have begun formal negotiations to resolve their ongoing logistics dispute, drawing industry attention to whether employer status will be recognized in the case.

According to the logistics industry on April 22, representatives from the Cargo Truckers Solidarity Division and senior officials from BGF Logis held their first formal meeting at 10 a.m. at the Jinju branch of the Ministry of Employment and Labor. The meeting was attended by BGF Logis CEO Lee Min-jae and union leader Kim Dong-kuk. A working-level session between logistics team officials and union negotiators was held later in the afternoon.

The talks follow an agreement reached on April 21 by both sides to seek a swift resolution to the dispute. Key agenda items reportedly included freight rates, labor practices, and the possible withdrawal of damage claims.

The union has demanded negotiations with BGF Retail since January, identifying the company as the principal contractor and calling for higher transport fees and improved working conditions. It argues that BGF Retail exercises de facto control over logistics operations, including shipment allocation, delivery schedules, and routes, thereby qualifying as an employer.

BGF Retail has rejected the claim, stating it is not the direct employer. The company maintains that logistics centers contract with transport firms, which in turn engage delivery drivers as independent contractors, placing BGF Retail outside the scope of direct negotiations.

As the disagreement persisted, the union launched a full-scale strike on April 5, blocking truck departures at logistics centers in Anseong, Jinju, and Gangwon, and later shutting down a ready-meal production facility in Jincheon on April 17. The plant, which produces around 150,000 items daily including kimbap, lunch boxes, and sandwiches, supplies more than 3,000 convenience stores, leading to estimated losses of tens of billions of won.

Amid the prolonged conflict, a union member died in an incident at a CU logistics center in Jinju on April 20, further escalating tensions. Both sides agreed the following day to resume dialogue and pursue a swift resolution.

While expectations are rising for measures such as lifting blockades at logistics centers, significant differences remain over key issues, suggesting further negotiations will be required.

 

 

 

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