[Logistics Union's Abuse of Power] "Save the Self-Employed Dying Due to Illegal Strikes"

Double Abuse by Minno and Hanno, Triple Hardship for Self-Employed
Union Power Struggle, Disruption in Material Supply
Prolonged Abnormal Operations Due to COVID-19
Anxiety Ahead of Chuseok Holiday Sales Boom

On the 14th, members of the Cargo Solidarity affiliated with the Korean Confederation of Trade Unions (vehicle owners) are taking collective action at the entrance of the SPC GFS Gwangju Logistics Center.

[Asia Economy Reporter Lim Hye-seon] Paris Baguette stores nationwide are experiencing disruptions in operations due to the refusal of transportation and obstruction of substitute driver deployment by the Cargo Solidarity of the Korean Confederation of Trade Unions (KCTU). More than 3,400 Paris Baguette franchise stores across the country are unable to receive finished products and ingredients from logistics centers, making normal operations difficult. Amid enduring K-quarantine measures during the prolonged COVID-19 crisis, stores are struggling to operate as they are not receiving timely supply deliveries.

Labor Union Conflicts Cause Outrage Among Small Business Owners

The issue began with a strike on the 2nd by the Paris Baguette branch of the Cargo Solidarity, Gwangju Headquarters 2nd Division of the KCTU. About 40 truck drivers illegally occupied the entrance and exit of Honam Shani’s Gwangju factory.

The strike started due to conflicts between delivery drivers affiliated with the Federation of Korean Trade Unions (FKTU) and those affiliated with the KCTU. KCTU delivery drivers demanded an increase in the number of vehicles from the transportation company contracted by SPC Group, under the condition that the freight charges remain the same, to reduce working hours. The company accepted this and added two more vehicles. However, during negotiations on adjusting delivery routes and operational methods, drivers from both FKTU and KCTU clashed over securing more favorable routes. The operation of delivery routes is the exclusive responsibility of the transportation company contracted by the company, and the company cannot intervene.

Although the transportation company attempted mediation, the KCTU insisted on unconditional acceptance of their proposed plan and began a strike refusing deliveries from early morning on the 3rd. Members of the Cargo Solidarity obstructed the entry and exit of substitute vehicles deployed to minimize damage to franchise owners. By the 11th, 24 union members had been detained by the police.

The solidarity strike escalated after Paris Baguette franchise owners notified the transportation company of their intent to claim damages. The estimated additional costs incurred due to hiring extra personnel and dispatching vehicles because of the strike amount to approximately 300 to 400 million KRW. In response, the KCTU demanded exemption from liability for damages as a condition to end the strike, but this was rejected. Ultimately, on the 15th, the KCTU launched a solidarity strike. As of that day, about 200 vehicles affiliated with the KCTU Cargo Solidarity at 10 logistics centers in Wonju, Daegu, Seongnam, Incheon, and other locations participated in illegal transportation refusal, accounting for about 30% of all delivery vehicles.

Franchise Owners’ Livelihoods Threatened, They Can’t Take It Anymore

Paris Baguette franchise owners in the heavily affected Gwangju area are devastated. Sales have already declined due to COVID-19, and now, without timely supply of ingredients, sales have been cut in half compared to the previous month. One franchise owner in Gwangju lamented, "The peak sales period for the Chuseok holiday has arrived, but we can’t sell bread because there is none," adding, "I don’t understand why we have to suffer because of the union’s power struggle." They further appealed, "It doesn’t feel like someone else’s problem when small business owners are making extreme choices due to economic hardship." Franchise owners have also posted pleas on the Blue House’s national petition site, asking for help.

Lee Jung-hee, chairman of the Paris Baguette Franchise Owners Association, criticized, "The damage is severe not only in Gwangju but also in Wonju," and said, "If the company had made mistakes or if the strike was part of resolving issues, it would be understandable, but causing harm to franchise owners for their own benefit is absolutely unacceptable." He added, "There are frequent cases where products and ingredients that should arrive at 7 a.m. come 10 hours late," and expressed concern, "We have always provided fresh bread daily, but we are more afraid of losing trust and being shunned by customers."