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🇰🇷 South Korea /Economy & Trade

South Korean Labor Minister Blames Multi-Layered Structure for Fatal CU Dispute, Urges Direct Talks with BGF Retail

From Hankyoreh · (11h ago) Korean Critical tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • South Korea's Minister of Employment and Labor, Kim Young-hoon, identified a multi-layered structure as the root cause of the fatal labor dispute at CU convenience stores.
  • He emphasized that BGF Retail, the operator of CU, is the 'original contractor' and should be the direct party for negotiations.
  • The minister criticized the situation, stating that the failure to institutionalize dialogue, partly due to the non-implementation of the 'Yellow Envelope Law,' exacerbated the conflict, leading to tragedy.

The Hankyoreh reports on the South Korean Minister of Employment and Labor's sharp analysis of the tragic labor dispute involving CU convenience store delivery workers. Minister Kim Young-hoon directly addressed the core issue, pinpointing the 'multi-layered structure' inherent in the supply chain as the fundamental cause, predating even the controversial 'Yellow Envelope Law.'

The fundamental cause is the multi-layered structure, which was a problem even before the Yellow Envelope Law.

— Kim Young-hoonSouth Korean Minister of Employment and Labor, identifying the root cause of the CU labor dispute.

Minister Kim unequivocally identified BGF Retail, the parent company of CU, as the 'original contractor' and the appropriate entity for direct negotiations. This stance challenges the common practice of companies distancing themselves from direct responsibility by operating through multiple subcontractors. The minister stressed that even if the delivery workers are classified as independent contractors ('nomu-jogeongja'), their de facto subordination to the original contractor makes them legally recognized workers under labor laws, citing existing legal precedents.

The Yellow Envelope Law institutionalizes dialogue. Unfortunately, dialogue was refused this time, and the situation worsened when the employer filed for damages.

— Kim Young-hoonExplaining how the failure to engage in dialogue contributed to the escalation of the conflict.

The article highlights the minister's critique of how the situation unfolded. He argued that the tragedy occurred not because of the Yellow Envelope Law, but because its intended purpose—institutionalizing dialogue—was undermined. The refusal of the company to engage in meaningful talks and the subsequent pursuit of damages claims by the employer escalated the conflict, leaving the union with little choice but to resort to 'extreme struggle,' ultimately leading to the fatal outcome.

Even if the form is that of a self-employed person, if they are practically subordinate to the original contractor, they can be considered workers.

— Kim Young-hoonClarifying the legal status of delivery workers in relation to the original contractor.

Furthermore, the Hankyoreh notes the complex, five-tiered structure of CU's logistics: BGF Retail → BGF Logistics → Regional Logistics Center → subcontracting transport company → delivery worker. Minister Kim asserted that this convoluted system generates unnecessary costs and fosters conflict, urging BGF Retail to simplify the structure and engage in direct dialogue to resolve the issues. The report also includes CU's response, which attempts to distance itself from user status and labels the strike as illegal, indicating the ongoing tension and the company's reluctance to accept direct responsibility.

Negotiations are merely an emergency consultation to prevent damage to franchise stores, and it does not acknowledge the company's user status.

— CUStatement from CU, attempting to distance itself from direct responsibility in the labor negotiations.
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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