CU Logistics to Resume as Cargo Union, BGF Logis Reach Tentative Deal

Signing Ceremony Scheduled at Labor Ministry's Jinju Office

Finance|
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By Kim Heung-rok
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CU BGF Logis and KCTU Cargo Truckers Solidarity officials reach a tentative agreement on a collective deal at the Ministry of Employment and Labor's Jinju branch in Jinju, South Gyeongsang Province, on the 29th. News1 - Seoul Economic Daily Finance News from South Korea
CU BGF Logis and KCTU Cargo Truckers Solidarity officials reach a tentative agreement on a collective deal at the Ministry of Employment and Labor's Jinju branch in Jinju, South Gyeongsang Province, on the 29th. News1

The Cargo Truckers Solidarity Division (Cargo Union) under the Korean Public Service and Transport Workers' Union of the Korean Confederation of Trade Unions has reached a tentative collective agreement with BGF Logis, the logistics operator for CU convenience stores. The deal is expected to allow CU's logistics and production operations to resume.

According to the Cargo Union and CU, the two sides signed the tentative agreement on the 29th and will hold an official signing ceremony at the Ministry of Employment and Labor's Jinju branch office on the same day. The Cargo Union plans to lift its blockade of major distribution centers immediately after the formal signing. BGF Retail, which operates CU, will return to normal operations once equipment inspections and personnel deployment at its logistics and production facilities are completed.

The Cargo Union had demanded that BGF Logis raise freight rates, expand days off, refrain from filing damages claims, and fully withdraw its injunction against obstruction of business.

The day before, Employment and Labor Minister Kim Young-hoon visited the ministry's Jinju office to mediate negotiations. "I came to help ensure that negotiations proceed swiftly and smoothly," Kim said. "If we build a new framework, the ground will harden after the rain. Please negotiate well so that good results can be achieved."

Since January, the Cargo Union had identified BGF Retail and BGF Logis as the primary contractors and requested negotiations seven times. BGF Retail, however, had maintained that it was not a direct negotiating party given the contractual structure with transport firms and distribution centers.

The CU branch of the Cargo Union declared an indefinite general strike on the 5th of this month, followed by simultaneous strikes starting on the 7th at key BGF Logis distribution hubs, including Anseong, Naju, Jinju, and Wonju. When the company activated alternative logistics using nearby distribution centers in response, the occupation expanded to production facilities.

The situation deteriorated sharply on the 17th when the entrance to the BGF Food plant in Jincheon, North Chungcheong Province, was blockaded. The plant is a core facility producing CU's ready-to-eat meals, and its shutdown effectively halted the supply of 18 major instant food products, including gimbap, triangle kimbap, and sandwiches. On the 20th, the conflict escalated rapidly after a union member was struck and killed by an alternative delivery vehicle during a rally in front of the Jinju distribution center.

Original reporting by Kim Heung-rok for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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