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🇰🇷 South Korea /Economy & Trade

CU Franchise Owners Suffer as Strike Causes Prolonged Logistics Chaos

From Hankyoreh · (13h ago) Korean Critical tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • CU convenience store franchise is facing prolonged logistics disruptions due to a strike by the national labor union of the Korean Confederation of Trade Unions' cargo truck division.
  • Franchise owners are reporting significant financial losses, with some stores experiencing delays of up to five days for essential goods.
  • The strike began after negotiations between the parent company, BGF Retail, and the union failed, with BGF Retail only agreeing to negotiate after a fatal accident at a logistics center.

The ongoing logistics crisis plaguing CU convenience stores, stemming from the cargo truck union's strike, is inflicting severe damage on franchise owners who are already operating on thin margins. The prolonged disruption, now extending for weeks, has created a critical shortage of essential goods, from fresh meals to everyday necessities, directly impacting daily sales and customer satisfaction.

Stores that rely heavily on convenience meals, like those near schools, have seen about 300,000 won in daily sales disappear due to the logistics disruption.

— Kim Mi-yeon, President of the CU Franchise Owners AssociationDescribing the financial impact of the strike on store owners.

Franchise owners are voicing deep frustration over what they perceive as the parent company's, BGF Retail's, delayed response. The union's demands for improved working conditions have reportedly been ignored for months, leading to the current industrial action. It was only after a tragic accident at a Jinju logistics center, where a striking union member died and others were injured, that BGF Retail finally agreed to engage in negotiations. This sequence of events has amplified the sense of injustice among store owners, who feel caught in the middle of a dispute where their livelihoods are being jeopardized by corporate intransigence and labor conflict.

Owners see both the victim and the driver involved in the accident with pity.

— Choi, CU Franchise OwnerExpressing empathy for all parties involved in the Jinju logistics center incident.

From the perspective of CU franchise owners, this situation highlights a systemic failure to address labor disputes proactively and empathetically. The reliance on a complex subcontracting structure, which BGF Retail has used to distance itself from direct responsibility towards the truckers, has exacerbated the problem. Now, with the union escalating its actions by blocking alternative transport routes and occupying key logistics hubs, the disruption is nationwide. The Hankyoreh has consistently reported on the precarious conditions faced by contract workers and the need for fair labor practices. This CU crisis underscores the urgent need for companies to engage in good-faith negotiations and for a more robust framework that protects the rights and livelihoods of all stakeholders in the supply chain, not just the corporate entities.

We will resolve the current situation as soon as possible and prepare support measures for the inconvenience and damages you have experienced.

— BGF RetailA statement to CU franchise owners regarding the logistics disruption.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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