[The Shadow of Multiple Unions] Companies Struggling with 'Labor-Labor Conflicts'

Establishment of Paris Baguette Subsidiary, Direct Employment of Bakers
3 Years Since Launch, Announcement of Social Agreement Implementation Results
Minnochoong "No Consultation with Us" Protest
Company Engages in Social Grand Bargain, Management Uncertainty Increases

[Asia Economy Reporter Seungjin Lee] The tug-of-war between the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU) is causing only trouble for companies nationwide. The labor-labor conflicts arising from companies’ attempts at social agreement and grand compromise to resolve labor-management disputes are increasing uncertainty in corporate management.

On the 12th, Yeoyoungguk, leader of the Justice Party, and party members claimed before the delegation meeting held at the National Assembly in Yeouido, Seoul, that Paris Baguette is suppressing unions by using multiple unions. This reflects the claims of KCTU-affiliated union members who called the agreement made with FKTU-affiliated union members, the representative union, a “collusion with a company-friendly union.” KCTU has threatened to hold a press conference and protests on the 13th, increasing Paris Baguette’s concerns.

Paris Baguette recently announced that PB Partners, established to directly employ bakers, marked its third year with a 39.2% wage increase, and raised annual salaries and welfare benefits to the same level as Paris Baguette headquarters. They stated that they faithfully kept the implementation promises made in consultation with FKTU-affiliated union members, the representative union, and have operated labor-management meetings and consultative bodies. However, KCTU-affiliated union members criticized, saying “labor-management meetings and consultative bodies have never been held and are merely self-declarations,” reigniting the long-standing labor-labor conflict.

On the 12th, Yeoyoung-guk, leader of the Justice Party, shouted slogans demanding the protection of human rights for Paris Baguette workers together with attendees before the leadership meeting held at the National Assembly in Yeouido, Seoul. [Image source=Yonhap News]

On January 11, 2018, at 5 p.m., attendees are posing for a commemorative photo at the Paris Baguette Baker Labor-Management Win-Win Agreement Ceremony held on the 12th floor of the CCMM Building in Yeouido, Seoul. From the left: Lee Jae-kwang, representative of the Paris Baguette Franchise Owners Association; Lee Jeong-mi, leader of the Justice Party; Shin Hwan-seop, chairman of the Korean Confederation of Trade Unions National Chemical, Textile, and Food Workers' Union; Kwon In-tae, CEO of Paris Croissant Co., Ltd.; Moon Hyun-gun, chairman of the Korean Federation of Trade Unions Central Region Public Industry Union; Woo Won-shik, floor leader of the Democratic Party of Korea; Lee Nam-shin, chairman of the Civil Society Countermeasures Committee.

A Paris Baguette official explained, “We tried several times to reach an agreement with the KCTU side, but it did not go well. We proceeded with consultations and implementation with the representative union to quickly resolve the issue that has continued for years, but it has flared up again as another conflict, putting us in a difficult situation.”

SPC Group established its subsidiary PB Partners in 2018 after the controversy over the ‘illegal dispatch’ of bakers arose in 2017. At its launch, a social agreement was made aiming for mutual cooperation between labor and management and the creation of good jobs, including improvements in wages and welfare levels with the representative union. The agreement was signed together by the company, unions, franchise owners, civic groups, the Democratic Party’s Euljiro Committee, and the Justice Party’s Emergency Exit.

In this process, PB Partners continued consultations with FKTU-affiliated union members who secured the status of the bargaining representative union, but demands from KCTU union members who failed to secure bargaining status were partially rejected, leading to ongoing labor-labor conflicts.